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I hope the lenders get wiped out. We can't really afford to bail out these folks anymore our interest is about to exceed our budget in the next year or so.
by AustinDev 3y ago
I hope the lenders get wiped out. We can't really afford to bail out these folks anymore our interest is about to exceed our budget in the next year or so.
- JumpCrisscross 3y ago> interest is about to exceed our budget in the next year or so Whose?
- zeusk 3y agoUS federal govt.
- JumpCrisscross 3y ago> US federal govt Who is saying this? One, it doesn’t make sense: interest payments are part of the budget. If we ask when interest will become the largest budget item, it’s around 2045 [1]. (For larger than discretionary, it’s early 2030s.) Fundamentally, interest as a fraction of GDP is high but precedented [2]. It’s trending worryingly. But it is not proximately dangerous. [1] https://www.crfb.org/papers/interest-payments-federal-budget https://www.crfb.org/papers/interest-payments-federal-budget [2] https://fred.stlouisfed.org/series/FYOIGDA188S https://fred.stlouisfed.org/series/FYOIGDA188S
- zeusk 3y agoTake it with OP, I'm just pointing out what he meant. Regardless - I do agree that the debt and deficit situation is getting a little out of hand. We're running deficits in late cycle which is quite dangerous. Also your [1] link is hilariously out of context from what has happened in the past year, interest rate on treasury bonds is 4+% and on bills/notes is 5+%. [2] Makes it seem like things are alright but we're in late cycle and we should be saving money for a downturn instead of taking on more debt at higher rates. https://fred.stlouisfed.org/series/A091RC1Q027SBEA https://fred.stlouisfed.org/series/A091RC1Q027SBEA
- pradn 3y agoThat's not true. The interest could possibly exceed the defense budget by the end of the decade. But not the whole budget.