The Faster America “Grows”, The Faster America Goes Bust
However, as the chart below shows, the huge increase in federal debt (red line) was accompanied by a minimal increase in interest payable on all that debt (blue line). The boxes detail the total debt incurred during each period against the annual increase in interest payments on that additional debt. The Federal Reserve is primarily to thank for the cheapening of debt and encouragement to undertake all that debt, but many fear the same Fed is set to hike those interest payments with its ongoing rate hikes.
In five months of fiscal year 2018 (through Feb 28), the Treasury has already issued $630 billion in new debt. The Treasury is on pace to issue $1.2+ trillion in new debt (2017 was a mere $672 billion increase). But let’s be conservative and assume the Treasury reins it in and “only” issues another $370 billion over the next seven months…for a nice round $1 trillion in new debt. Big numbers are hard to comprehend, so I’ll show just the added responsibility from the debt undertaken in 2018, per every full time employee in the US (there are 127 million FT US employees):
+$31 per work day
+$157 week
+$658 month
+$7.9 thousand annually
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