23 Jan The INSANE reason why interest rates won’t stay high for too long
4 words: Federal interest rate payments.
As rates increase, the US owes more and more interest rate payments on outstanding bonds they have issued to third parties.
We paid 352 billion in 2021.
We paid double that in 2022 at 737 billion.
And we’re on track to pay over a trillion in 2023 if they keep raising for a long time.
And if interest rates keep increasing, we would have to cut funding for defense, social security and Medicare, which is very unlikely.