3 ms·
Much more relevant is the cost of servicing the debt which has trended down/flat over time. Recent rising interest rates will change that somewhat but I see no
by sbelskie 4y ago
Much more relevant is the cost of servicing the debt which has trended down/flat over time. Recent rising interest rates will change that somewhat but I see no real area of concern.
https://fred.stlouisfed.org/graph/?g=Utqq https://fred.stlouisfed.org/graph/?g=Utqq
- jnwatson 4y agoI see the opposite. Even if interest rates don’t rise more, we’re talking about a tripling of the service cost relative to GDP. That is going to put pressure on budgets for sure.
- sbelskie 4y agoWhere do you see a tripling? Are you mixing up the lines and their respective x-axis?
- jeffbee 4y agoAs you can see from the graph, the tripling of the debt ratio did not triple or even raise the service costs, because the debt market was absorbing debt for free or even at negative cost. The United States would have been very foolish indeed to have not borrowed under these terms.
- missedthecue 4y agoThe weighted average maturity of federal debt is less than 65 months and dropping. Only a very very small portion of the national debt is locked in for thirty years.