But the biggest increase in spending came in an ominous category: Debt service costs rose by $146 billion, or 34 percent, compared to this time last year. As interest rates rise due to the inflation Democrats’ spending sprees have caused, the cost of servicing our debt grows ever higher.
Even the $572 billion the federal government has paid in interest costs this fiscal year will likely prove lower than the sums Washington will pay going forward. At the beginning of the current fiscal year last Oct. 1, the Federal Reserve had set interest rates in a range of between 3-3.25 percent. Now, they are between 5.25-5.5 percent. As a result, when the federal government has to take on additional debt, and/or refinance its existing debt, it will have to pay much higher interest rates to do so.
The $572 billion paid in interest costs this fiscal year represents 15.5 percent of receipts, or nearly $1 in $6 the federal government has taken in over the last 10 months. And with those interest costs almost certain to grow, at a point in the not-too-distant future, we could face a scenario where borrowing merely begets more interest and more borrowing.
All of this fiscal doom and gloom comes at a time when the administration is trying to take credit for its economic “achievements.” Somehow, the president has yet to take credit for the fiscal elements of its agenda. But to borrow the White House’s favored political messaging, “Trillions of dollars in debt, and no way out — that’s Bidenomics.”
I think that day is closer than many people realize. Usually with a reverse yield curve is a reliable indicator that things are about to get much worse soon. The warning signs are in full view, I wonder how many are paying attention?
Totally agree, but we need to straighten our own house out first in order to get to a position of strength before confronting China on anything. Priorities is to take back our country!
That will happen when investors give the treasury the middle finger and demand an interest rate premium to off set the risk.
Imagine the administration putting in place a regulation stating 1/2 of all retirement accounts be invested in treasuries. Now that would get the attention of Americans.
Those in power are finding new ways to win at our expense.
And the mainstream media not only turns a blind eye to the truth. They go out of their way to bend the truth to fit their agenda.
“Mob violence” is now a “peaceful protest.”
An “illegal immigrant” is an “undocumented worker.”
A “concerned parent” is a “domestic terrorist.”
And an “economic recession” is “transitioning growth.”
Yet no matter how hard those in power try to whitewash the truth . . .
The truth always comes out.
