Interest Payments As % of GDP continues to explode higher. The highest since 1999.
While some people say this is free money to savers, it is incorrect. Bondholders had to suffer trillions of dollars in bond devaluation for rates to rise. These self-proclaimed "experts" obviously do not understand how bonds work.
Don't be fooled by these "experts".
I keep seeing posts all over social media claiming that interest payments on the Public Debt
are "unsustainable".
No. Interest payments must be viewed relative to Tax receipts to get the
full story.
Currently, the US Gov't interest payments on the debt are 27% of Tax revenues.
In the mid 80's interest payments were 49% of all tax revenues. Way higher
than...
While a lot of people are making a big deal about interest payments the reality is far different. To get an accurate reading you must compare interest payments to GDP.
While I agree we should not be deficit spending to infinity at the same time we must also understand where we stand right now and what the trend is.
Here is the raw chart paraded.
Silver above 400$ in 10 years? Possible.
Do not underestimate the central banks and governments capacity to destroy your purchasing power.
#silver #gold #inflation #usdollar
It is all about HOW FAST something is happening
A higher FEDFUNDS rate (currently around 0%) causes higher rates on treasury yields.
Here is our "effective rate" (ER) we pay on the national debt. Currently around 1.9% and 22% of tax receipts go to paying this interest.
If ER goes above around 3%, interest payments are around 26% of US federal revenue.
If ER goes above around 5%, interest payments are around...
This chart shows the difference between the percent of federal tax receipts used to pay interest on the national debt (currently around 20% of tax receipts) and the FEDFUNDS rate. This difference has been growing through the years as the debt grows larger and people are less willing to buy treasuries at low interest rates. Even with historically low interest rates...
This chart attempts to show the ratio between the percent of federal tax receipts used to pay interest on the national debt (currently around 20% of tax receipts) and the FEDFUNDS rate. This ratio has been growing through the years as the debt grows larger and people are less willing to buy treasuries at low interest rates. Even with historically low interest...
A serious matter, as interest Expense is not about to absolve itself.
Amortized discount or premium on UST Bills, Notes, and Bonds is also included
within the monthly interest expense.
The Fiscal Year represents the total interest expense on the Debt Outstanding
for a given fiscal year.
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No...
