The Bidenomics hangover is about to get way worse.
As Joe Biden continues racking up historic deficits to fund his agenda (while hilariously claiming to be reducing the national debt), interest on the national debt is on track to become the biggest item in the federal budget.It's just a flesh wound. pic.twitter.com/V1F66zM2hh
â Sven Henrich (@NorthmanTrader) August 30, 2023
According to Just the Newsâ Ben Whedon:
Sustained deficit spending by the U.S. government helped push the national debt up to a jaw dropping $31.38 trillion in 2023, according to U.S. Treasury data. Fiscal watchdogs are now predicting that the interest alone on that debt will soon eclipse both entitlements and defense spending as a major component of the annual budget.
At the same time that the national debt is at a record high, interest payments in mid-2022 stood at just under $600 billion, according to a report from the Committee for a Responsible Federal Budget (CRFB).
The report, which outlines the challenges that face the next administration, projects that such payments will exceed the combined costs of Medicaid, SNAP (food stamps), and Supplemental Security Income (SSI) in late 2023, though it varies depending on interest rates.
Debt service is projected to exceed defense spending either later this year or in 2026, again contingent on interest rates.
Interest rates have gone up significantly recently, which will massively increase the cost of newly issued debt. While a 10-year treasury note carried only a 1% interest rate back in 2021, they now top 4%.
Matt Palumbo is the author of Fact-Checking the Fact-Checkers: How the Left Hijacked and Weaponized the Fact-Checking Industry and The Man Behind the Curtain: Inside the Secret Network of George Soros
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