Biden Sets THIS Horrible Record

Joe Biden

( – Showcasing the Biden administration’s irresponsible handling of the economy, Bloomberg Intelligence reported in a recent analysis that the annualized interest payments on the United States’ national debt have reached a staggering $1 trillion as of October’s end. This alarming figure represents a 100% increase over the last 19 months and accounts for nearly 16% of the federal budget for the 2022 fiscal year.

The analysts from Bloomberg Intelligence noted in their memorandum, “This high proportion of interest payments as a share of federal spending has precedent, as the portion before 2000 was over 14% in most years.” They underscored the government’s challenge in managing obligatory expenditures while curtailing the issuance of additional debt. They expect interest payments to continue rising despite predictions of decreasing Treasury yields.

In the wake of the Federal Reserve’s substantial interest rate hikes, the expense of servicing the debt has soared, reflecting a broader impact on all economic credit sectors. The federal deficit has been expanding rapidly, and the interest cost on government debt is a prime example, jumping from $352 billion in fiscal 2021 to $476 billion in fiscal 2022 and hitting $659 billion by the end of fiscal 2023 in September.

The United States now faces a compounding dilemma, with its debt exceeding $33 trillion. To entice lenders, Treasury yields must increase, further inflating the cost of borrowing.

The value of Treasury bonds has plummeted dramatically in recent years, a downturn market specialists like Ed Yardeni attribute to growing anxiety over the mounting national debt and the resurgence of “bond vigilantes” who exert pressure on the government through the bond market. Fitch’s downgrade of the U.S. government’s credit rating this past summer has exacerbated these concerns.

In a CNBC interview, Yardeni elaborated on the deficit’s implications, warning that persistent inflation could precipitate a severe crisis. He anticipates the necessity for bond vigilantes to intensify their efforts in urging politicians to address the deficit more fundamentally.

The Penn Wharton Budget Model casts a bleak projection, suggesting that if the U.S. does not stabilize its debt trajectory in the coming years, a default of some nature may become inescapable.