- Federal budget deficits and high interest rates are causing interest payments on the $33 trillion national debt to increase significantly.
- The federal government recorded a $1.7 trillion deficit in fiscal year 2023, making it the third-largest deficit in U.S. history.
- Interest rates have risen to their highest levels in 22 years due to the Federal Reserve’s efforts to combat inflation, resulting in increased debt servicing costs.
- In FY2023, the federal government spent $659 billion on interest payments, exceeding previous projections.
- A report by the Congressional Research Service (CRS) highlighted concerns about the sustainability of the national debt and the potential for adverse effects on GDP growth or even default.
- While there is no consensus on when the debt would become unsustainable, estimates range from debt-to-GDP ratios of 80% to 200%.
- Interest on the national debt is the fastest-growing part of the budget, surpassing spending on children and Medicaid.
- The current trajectory of fiscal policy and publicly held debt is considered unsustainable without policy changes or economic shifts.
- Politicians are urged to prioritize their country’s well-being and integrity over personal gain, and accountability for politicians is seen as crucial to building trust.
- One suggested solution is implementing a law that makes members of Congress ineligible for re-election when the deficit exceeds 3% of GDP.
For Business has an article with more details. See below for more. Large deficits, high interest rates making federal debt less sustainable
Warren Buffet said pure logic on the deficit…. “I can fix the national debt problem in 5 minutes!! You make a LAW that states : anytime the DEFICIT is larger than 3% of GDP, all members of congress are ineligible for re-election”
🚨🚨🚨@patrickbetdavid has an excellent quote from Warren Buffett about fixing a bigger issue in the political system :
“I can fix the national debt problem in 5 minutes!! You make a LAW that states : anytime the DEFICIT is larger than 3% of GDP, all members of congress are… pic.twitter.com/POSa6vm5Ma
— Kevin – WE THE PEOPLE❤️ – DAD🦁 🐉 🔥 (@bambkb) December 14, 2023
WE ARE GOING TO BE $50T IN DEBT: @RepJohnRose joins the show to discuss the debt that America keep accumulating — the deficit is more than than all combined discretionary spending of the U.S. government. We’ve GOT to get frugal!
WE ARE GOING TO BE $50T IN DEBT:@RepJohnRose joins the show to discuss the debt that America keep accumulating — the deficit is more than than all combined discretionary spending of the U.S. government. We’ve GOT to get frugal!
🎙️🔴 Watch LIVE:https://t.co/wwVsnTyXoB
— John Fredericks (@jfradioshow) December 20, 2023
- State budget analysts recently projected a record $68-billion deficit in the next fiscal year thanks to a 25% drop in personal income tax collection in 2023 as wealthy and educated leave California. Los Angeles Times
- The U.S. federal budget deficit jumped 26% in November from a year earlier to $314 billion, a record for the month and the highest since March. Washington needs to wake up to the very real threat of our debt crisis. – Congressman Josh Brecheen – Reuters linked article
- Treasury warns U.S. budget deficit up 13% compared to this time last year, reaching $34 trillion | Just The News
- The U.S. federal budget deficit jumped 26% in November from a year earlier to $314 billion, a record for the month and the highest since March, driven by sharply higher interest costs. Everyone refinanced their debt except the U.S. Treasury.
- The U.S. federal budget deficit jumped 26% in November from a year earlier to $314 billion, a record for the month and the highest since March, the Treasury Department has said – Unusual Whales
- BIG CRACKS APPEAR: Massive U.S. Deficits & Major Problems At The FDIC Deposit Insurance While the U.S. Treasury monthly deficit surged again in November, you should see what’s happening at the FDIC. SRC
- “The growth in spending continues to outpace the growth in tax collections. This is why our national debit is heading toward $34 trillion. It cannot go on forever without serious economic consequences,” says the leader of the Tax Foundation – Scott Brow
