Interest On US National Debt Surpasses Defense Spending – OpEd
==========
As of May 2024, the amount of money spent on interest owed to the US government's creditors surpasses the annual amount spent on national defense. Interest on the national debt represents the biggest single category of spending by the US government and is now the third largest mandatory spending program behind Social Security and Medicare. The growth of the national debt and the surging amount of interest that must be paid on it is fueled by excessive spending. The Biden administration is planning to cut some Medicare benefits starting in January 2025. The Treasury Department is gambling on interest rates falling, but this strategy represents a losing bet with guaranteed losses. Short-term interest rates have risen higher than long-term rates due to the Federal Reserve raising them to combat inflation unleashed by the Biden administration's 2021 fiscal stimulus. Yellen's national debt management strategy is criticized for issuing debt at higher interest rates amid an inverted yield curve. The article suggests that Yellen's strategy represents a losing gamble with guaranteed losses as long as inflation persists. The author warns that even winning the bet would come with pain because the Fed typically cuts interest rates in the face of economic recessions.
#UsNationalDebt #DefenseSpending #InterestRates #BidenAdministration
https://www.eurasiareview.com/25062024-interest-on-us-national-debt-surpasses-defense-spending-oped/
Eurasia Review /
npub1wc…jzsfw
2024-06-25 00:33:53
Author Public Key
npub1wc7d8ck45cw5jgdwx6du933w2eqtgpmyvxgk6wtmzdghtpwrx2cqejzsfwPublished at
2024-06-25 00:33:53Event JSON
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"content": "Interest On US National Debt Surpasses Defense Spending – OpEd\n==========\n\nAs of May 2024, the amount of money spent on interest owed to the US government's creditors surpasses the annual amount spent on national defense. Interest on the national debt represents the biggest single category of spending by the US government and is now the third largest mandatory spending program behind Social Security and Medicare. The growth of the national debt and the surging amount of interest that must be paid on it is fueled by excessive spending. The Biden administration is planning to cut some Medicare benefits starting in January 2025. The Treasury Department is gambling on interest rates falling, but this strategy represents a losing bet with guaranteed losses. Short-term interest rates have risen higher than long-term rates due to the Federal Reserve raising them to combat inflation unleashed by the Biden administration's 2021 fiscal stimulus. Yellen's national debt management strategy is criticized for issuing debt at higher interest rates amid an inverted yield curve. The article suggests that Yellen's strategy represents a losing gamble with guaranteed losses as long as inflation persists. The author warns that even winning the bet would come with pain because the Fed typically cuts interest rates in the face of economic recessions.\n\n#UsNationalDebt #DefenseSpending #InterestRates #BidenAdministration\n\nhttps://www.eurasiareview.com/25062024-interest-on-us-national-debt-surpasses-defense-spending-oped/",
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