Could interest rates trigger that third rail?
by rflor (2024-02-17 20:24:02)

In reply to: Medicare social security and the military  posted by AquinasDomer


Interest rates on US government debt rises so high, that the US government has a difficult time raising new debt and/or cannot sustain it.

The WSJ just ran an article showing how US govt debt service will shortly approach $1T per year. However, there’s no consensus on when those payments and/or interest rates have an appreciable effect on US debt purchases (maybe once we default?).

China used to think they would supplant the USA in this regard, but they have their own structural issues that we’ve discussed before back here.