Headline:
U.S. Monthly “Net Interest” Payments Exceed Defense Spending & Equal To Healthcare Expenditures.
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Dual U.S. Deficit + Debt Dilemmas = Well Understood By Financial Market Actors…
But Are Typically Dismissed As Illegitimate Concerns…Both Fiscal + Monetary.
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Nevertheless…Sharply Higher U.S. Debt Trends = Not Sustainable…
As “Net Interest” Payments For July ’23…Illustrated In Title Graphic = 4th Largest Monthly Federal Debit.
Monumentally Bloated U.S. Fiscal Deficits For 20+ Years…Continually Build + Stack The National Debt Burden…
Though The Burden Was Masterfully Obfuscated By U.S. Federal Reserve “Debt Monetization” Policies…2009-2022.
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Thus…As U.S. Sovereign Debt Careens Higher…
Interest Costs To Service Debt…Coincidingly Bite + Ramp.
Federal Reserve Actions Compound The Fiscal Predicament By Bleeding Its Swollen Balance Sheet Into The Financial Markets…
All Of Which Increasingly Weigh On Fixed Income Asset Prices.
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Interest Payments To Service Debt = Sunk Costs…
Offering No Productive/Residual Value…
As Debt Is Nothing More Than A Debentured Tool…
Facilitating Demand Shift…From The Future…To The Present.
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