Let me be honest, I have a fascination with the suicidal tendencies of entire nations, including our own. We have put ourselves in a financial mess that will be about impossible to recover from. The consequences will be very reduced standards of living for most people. For the last decade or more, we were able to constantly jack up the federal debt at a very low cost–interest rates on the newly issued debt were incredibly low. No more, and I doubt we will ever get back to that low interest rate environment. We have too much debt and people will start to worry about our ability to pay it off, or even pay the interest. Here is the effect of the rising interest rates–a huge portion of the federal budget will be devoted just to paying interest on the debt. Our current idiotic federal administration is adding trillions of new deficits and debt every year.
The last 12 month’s interest at the start of 2022 was about $350 billion. In May 2023 the same number is $600 billion, and we are just at the start of an exponential rise, as the Treasury not only has to issue lots of new debt to cover Bidementia’s spending boom, but re-finance old debt that had very low rates attached to it. The average cost of current debt is two to three times higher than that of the old debt. The interest will soon be over $1 trillion a year, then two trillion. And that assumes we can even find buyers for the debt. The federal budget has to brought into balance now, immediately–end all the green subsidy bullshit, all the student loan forgiveness, all the wasted welfare spending–it all has to end now; before it literally is too late. (ZH Post)