US’s effective debt burden, debt * (interest rate - inflation)/GDP, isn’t particularly high right now. Unfortunately some politicians seem to have decided unlim

US’s effective debt burden, debt * (interest rate - inflation)/GDP, isn’t particularly high right now. Unfortunately some politicians seem to have decided unlimited increases in debt are ok. That makes lenders concerned driving up rates. It’s unstable because of how quickly interest rates can change. Right now the 3.375% interest on 37.1T of debt - ~2.7% inflation = an effective interest rate of ~0.675% well below long term GDP growth rate. But that 3.36% is a significant increase over even 1 year ago. If it grows to 5% without higher inflation things spiral fast. https://www.jec.senate.gov/public/vendor/_accounts/JEC-R/debt/Monthly%20Debt%20Update.htmln https://www.jec.senate.gov/public/vendor/_accounts/JEC-R/deb...