{"id":36407,"date":"2018-08-04T11:51:37","date_gmt":"2018-08-04T16:51:37","guid":{"rendered":"http:\/\/olduvai.ca\/?p=36407"},"modified":"2018-08-04T11:51:37","modified_gmt":"2018-08-04T16:51:37","slug":"the-u-s-government-to-fork-out-a-half-trillion-to-service-its-debt-in-2018","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=36407","title":{"rendered":"The U.S. Government To Fork Out A Half Trillion To Service Its Debt In 2018"},"content":{"rendered":"
\n

The U.S. Government To Fork Out A Half Trillion To Service Its Debt In 2018<\/a><\/h3>\n<\/header>\n
\n

The U.S. Government is going to surpass another significant milestone this year.\u00a0 According to the recently released data from the TreasuryDirect.gov, the government will fork out a stunning half trillion dollars just to service its debt in 2018.\u00a0 Unfortunately, as U.S. interest rates rise, along with ever-expanding public debt, the cost to service the debt will continue to increase.<\/p>\n

In just the first nine months of the year, the U.S. interest expense has increased by an additional $40 billion.<\/strong>\u00a0 Last year, the U.S. Government paid only $375 billion to service its debt from October to June, but this year it has jumped to $415 billion:<\/p>\n

\"\"<\/p>\n

Now, if we consider that the U.S. Treasury paid $83 billion in interest expense for the three remaining months last year, and add it to the current total, it would equal $498 billion.\u00a0 However, the U.S. interest expense is up over 10% already.\u00a0 So, if we assume that the interest expense for July-Sept will also be up 10%, then the estimated total debt service for fiscal 2018 will reach $506-$510 billion<\/strong>.<\/p>\n

A half a trillion dollars to service one\u2019s public debt is truly a staggering figure.\u00a0 Since 2012, the U.S. interest expense has increased from $360 billion to an estimated $500+ billion this year:<\/p>\n

\"\"<\/p>\n

Interestingly, the U.S. debt service in 2000 of $361 billion was higher than the $360 billion in 2012.\u00a0 The U.S. government paid more interest payments in 2000 because of a much higher interest rate of 6.6%, even though the public debt was only $5.6 trillion.\u00a0 In the chart below, we can see how the falling interest rate and higher debt kept the U.S. debt service from exploding:<\/p>\n

\"\"<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The U.S. Government To Fork Out A Half Trillion To Service Its Debt In 2018 The U.S. Government is going to surpass another significant milestone this year.\u00a0 According to the recently released data from the TreasuryDirect.gov, the government will fork out a stunning half trillion dollars just to service its debt in 2018.\u00a0 Unfortunately, as […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[431,12073,1576,843,21098],"class_list":["post-36407","post","type-post","status-publish","format-standard","hentry","category-economics","tag-interest-rates","tag-srsrocco-report","tag-us-debt","tag-us-government","tag-us-interest-payments"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/36407","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=36407"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/36407\/revisions"}],"predecessor-version":[{"id":36408,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/36407\/revisions\/36408"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=36407"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=36407"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=36407"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}