U.S. Debt – A Reminder
Record U.S. debt is rising fast, up 30% in two years. Apply high and rising interest rates on top of that, and we’ve got a toxic combination.
Take a look at the St. Louis Fed’s Total Public Debt graph.
President Andrew Jackson paid off the entire United States national debt on January 8, 1835 .
The U.S. had no debt.
In the crazed 1980’s (150 years later), the Federal Total Public Debt never touched $3 trillion.
Today, that debt is ten times as much, exceeding $30 trillion.
In Q1 of 2020, debt was $23 trillion.
Just two years later, debt had risen 30% to $30 trillion.
30% in the last two years.
And that’s while interest rates were low.
Rising Interest Rates
With inflation at a forty year high, the U.S. government feels compelled to raise interest rates.
Of course, that means the U.S. is also raising rates on its own debt.
Which it can’t pay in the first place.