Loading ...It is important to understand the math associated with higher US Government interest rates. With over $31T of debt, the US Government budget is at great risk of running unsupportable deficits if interest rates continue to increase. In the fiscal year ended 9/30/22, the US Federal Government incurred interest expense of $392B. Today, on a going forward, run-rate basis, the Treasury has interest expenses of $672B annualized. If rates continue to increase to say an average of 4%, interest expense would be $1.2T, and 5% would imply $1.6T. The latter number is almost $1.0T larger than our current run rate
https://www.zerohedge.com/markets/cracks-world-economy-are-starting-show