A few quick points:
1. This is $1 trillion on a fiscal year basis. On an annualized basis, the US hit $ 1 trillion in interest a year ago. For the full fiscal year which ends Sept 30, total US interest will be over $1.2 trillion.
1. This is $1 trillion on a fiscal year basis. On an annualized basis, the US hit $ 1 trillion in interest a year ago. For the full fiscal year which ends Sept 30, total US interest will be over $1.2 trillion.
2. Some have pointed out that Interest on the debt has surpassed defense spending. Actually, it did that over a year ago. As of this moment, interest spending is the 2nd largest US outlay and it will surpass spending on Social Security in early 2025
3. Even if Powell cuts rates to 0 tomorrow (inflation would explode), cash interest expense will keep rising and will peak at $1.4 trillion. If the Fed cuts by "only" 100bps in the next year and keeps rate constant, interest will hit $2 trillion by 2026.
4. Income taxes (individual and corporate) now fund less than 50% of government spending. If Trump proposed to do away entirely with all income taxes, the US would need to raise "only" another $ 2.4 trillion in additional debt to the $4 trillion it raises every year.
5. The US does not have an income problem, it has a spending problem
6. Gold will soon start moving in $100 daily increments.
One final point. The next four years will see an unprecedented fiscal crisis.
Why does Trump even want to deal with this?
Just let Kamala have it so the US can reset faster.
Why does Trump even want to deal with this?
Just let Kamala have it so the US can reset faster.
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