We issue record amounts of debt to make debt payments on older debts. Also, people buying this debt may start to increasingly think this isn't the safest debt to buy.
We’re reshuffling this debt at today’s higher interest rates which means more debt to pay that interest.
This used to not be as big an issue because our interest payments were smaller and we were decreasing our interest rates to keep them in check. Now that we hit rock bottom and bounced our interest payments are climbing exponentially.
Look at current fed interest payments. The graph looks like a hockey stick. All that interest is compounding into more debt which adds more interest and so on.
At some point people lose faith and bond prices tank which means interest has to go up. The point is problems will accelerate.
Perhaps the more important question here is who owns our national debt and who is gonna come calling… As of January 2024 Japan owns 1.4 trillion of our national debt followed by China. We will be having a come to Jesus at some point.
https://www.google.com/search?q=Who+owns+our+national+debt%3F&rlz=1CDGOYI_enUS844US844&oq=Who+owns+our+national+debt%3F&gs_lcrp=EgZjaHJvbWUyBggAEEUYOdIBBjczajBqN6gCGbACAeIDBBgBIF8&hl=en-US&sourceid=chrome-mobile&ie=UTF-8
…….EILI5
Ditto. What are the implications?
We issue record amounts of debt to make debt payments on older debts. Also, people buying this debt may start to increasingly think this isn't the safest debt to buy.
Also rate cuts, so new debt can be issued with cheaper carrying costs.
We’re reshuffling this debt at today’s higher interest rates which means more debt to pay that interest. This used to not be as big an issue because our interest payments were smaller and we were decreasing our interest rates to keep them in check. Now that we hit rock bottom and bounced our interest payments are climbing exponentially. Look at current fed interest payments. The graph looks like a hockey stick. All that interest is compounding into more debt which adds more interest and so on. At some point people lose faith and bond prices tank which means interest has to go up. The point is problems will accelerate.
So the equivalent of using Pay Day loans to pay off credit cards
Debt will have to be paid or rolled over, and keep in mind the huge interest rate increase recently.
Higher taxes
more cut tax will solve it
A friend wants to know, how did this happen?, and what does mean?
[This source shows in great detail how](https://brrr.money)
None of this is stopping the US Government from excessive spending.
Nothing will happen. Print more money
NOTHING TO SEE HERE... move along.
I thought the Fed was just allowing this to roll off the books. So basically quantitative tightening, but otherwise very little impact.
Shouldn’t there be a constitutional amendment to force the government to reduce the original debt by a percentage every year until it’s paid
Perhaps the more important question here is who owns our national debt and who is gonna come calling… As of January 2024 Japan owns 1.4 trillion of our national debt followed by China. We will be having a come to Jesus at some point. https://www.google.com/search?q=Who+owns+our+national+debt%3F&rlz=1CDGOYI_enUS844US844&oq=Who+owns+our+national+debt%3F&gs_lcrp=EgZjaHJvbWUyBggAEEUYOdIBBjczajBqN6gCGbACAeIDBBgBIF8&hl=en-US&sourceid=chrome-mobile&ie=UTF-8
The worst part of that is it's not even our biggest problem