In 1991, the US spent 18.4% of federal revenue just on interest, and the 30-year bond paid 8%.
Today, the spending is 18.5%, with the bond paying 5.21%.
The same weight of interest with a rate almost 3 percentage points lower means that the debt stock became so much larger that cheap interest hurts just as much as expensive interest did three decades ago.
Annual interest spending hit US$ 1.25 trillion, more than 4 times the 1991 level.
And that percentage of revenue has more than quadrupled just in the last 4 years.
There is no world for prolonged hiking. It’s simply a question of math.
This is the biggest debt crisis the fiat currency has ever experienced. And I hope you know what that means.
Today, the spending is 18.5%, with the bond paying 5.21%.
The same weight of interest with a rate almost 3 percentage points lower means that the debt stock became so much larger that cheap interest hurts just as much as expensive interest did three decades ago.
Annual interest spending hit US$ 1.25 trillion, more than 4 times the 1991 level.
And that percentage of revenue has more than quadrupled just in the last 4 years.
There is no world for prolonged hiking. It’s simply a question of math.
This is the biggest debt crisis the fiat currency has ever experienced. And I hope you know what that means.
