Fiat FED TP tended towards $0, PM-backed real treasury money picking up... this will flood at some point.
Note the use of the seeing-eye pyramid for the fiat FED M2, and the use of the flag-USA-map icon for USA Treasury dollars.
Posted on 11/09/2023 7:20:31 AM PST by Kaiser8408a
Another day, another dose of bad fiscal/monetary news. Not surprising with the US Treasury being run by Janet Yellen, who doesn’t seem to know much economics. In fact, with Biden/Congress spending like drunken sailors in port, inflation and The Fed’s counterattack, we see that interest of US debt just hit $1 TRILLION!
$1.027 trillion in interest is calculated by multiplying the average interest rate on marketable US Treasury debt (which according to the Treasury is 3.096% as of Oct 31) by the $26.003 trillion in marketable US debt (as of Oct 31) which nets off to $805 billion, and adding to this non-marketable debt interest (which as of Oct 31 was 2.884% multiplied by the amount of non-marketable debt which is $7.696 trillion) and which in turn is an additional $222 billion in interest. Add across and you get $1.027 trillion.
Fans of exponential functions, we got you covered: the unprecedented surge in both interest rates and interest expense in the past two years means that total US interest has doubled since April 2022 and that’s with the inherent lag in interest catch up – as a reminder, the vast majority of 5, 7, 10 and 30 year debt is still locked in at much lower interest rates, and as such, rates will continue to rise as all of the existing debt rolls into much higher rates over the coming years.
On the personal finance side, annual Interest payments on a 30-year, fixed-rate mortgage before Biden was $8,500, but after Biden it almost tripled to $24,300! That means that annual mortgage interest rose 186% under Biden.
(Excerpt) Read more at confoundedinterest.net ...
Who cares? It is our Great Grandkid’s problem.
This ends badly.. it’s likely going to come to a head soon.
if a republican wins in 2024 the rats will make sure it happens on their watch. (so they can blame the republican for wrecking the wonderful Biden economy)
If I recall correctly, the federal government spends about $6 trillion annually, on all government spending.
Of the $6 trillion, about $1 trillion is just paying interest on previously borrowed money to fund previous deficit spending.
Wow.
It’s unsustainable long term. Whether any substantive changes will ever be made, remains to be seen. Even though these numbers are enormous, it’s still a matter of trying to get to a balanced budget, and then trying to pay down debt so that the interest expense doesn’t overwhelm everything else eventually.
My old lefty college prof promised us:
“We owe it to ourselves.”
Lol.
Financial Armageddon is a small price to pay for no more mean tweets coming from the orange bad man in the White House
The American Nightmare Part 2 ( Part 1 was 1970s and early 1980s ).
Fiat FED TP tended towards $0, PM-backed real treasury money picking up... this will flood at some point.
Note the use of the seeing-eye pyramid for the fiat FED M2, and the use of the flag-USA-map icon for USA Treasury dollars.
Not well documented IMHO, but there is $0 going to the principal... only paying the interest.
The federal reserve will continue to raise interest rates to line their pockets.
The average Biden voter can’t figure this out.
Honestly I know one who didn’t vote for Trump because “he makes me feel bad.”
Exact words (she also never heard of the First Amendment, I kid you not).
We’re not paying a penny of our principal and never will. $40 Trillion debt coming, then 50, then 60, ad infinitum...if we don’t stop this drug-fueled spending, get an actual budget, and cut government down to size.
This affects everything, including the defense budget. We are broke. We will soon have guns vs butter battles. The Medicare Trust Fund is exhausted in 2028, triggering, by law, a decrease of about 20% in Medicare benefits, i.e., limited to revenue received.
We can’t print our way out of this death spiral.
We are past any managment options for the debt. Too many prior bad decisions.
Options are inflation to defer
or
bankruptcy.
We have watched a major world power go bankrupt in our lifetime.
It is an interesting study of what happens. Life goes on but it is different.
However, it will go ad infinitum, as long as there are numbers like quadtrillion, quintillion, etc. Just have to do it gradually. As it is, the fiat TP we refer to as one dollar has inflated from .03 cents in 1913.
Drug-fueled spending is not the problem, fiat is. IMHO, much more all-at-once spending would help, in that it would hasten to bring the whole corrupt system down. Let's send $100 Trillion to Ukraine, that should solve the "problem".
We need to terminate fiat, terminate fractional-reserve bankstering, and move to Treasury PM-backed currency.
The masses don’t care, until they have trouble buying the latest iphone. And then, their tv will tell them it’s the fault of Republicans.
It will be worse next year. Soon, deficits will be $2 trillion/year.
Your interests are going to rise big time. If you are anywhere near having to renew, I suggest you do it now and lock it in. Better to pay a bit of a penalty for doing this than waiting.
bankruptcy.
Exactly! That's the route that we *are* taking.
“if we don’t stop this drug-fueled spending”
That ship has sailed. The only question is which iceberg will be the one to collide with it and take it to the bottom of the sea.
“This affects everything, including the defense budget. We are broke. We will soon have guns vs butter battles. The Medicare Trust Fund is exhausted in 2028, triggering, by law, a decrease of about 20% in Medicare benefits, i.e., limited to revenue received.
We can’t print our way out of this death spiral.”
Yep, well said. I would dare to say we are in the guns vs butter battle right now.
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