It took me a while to understand this, but when yields go up that means it's actually crashing. Increasing the yield to make it more attractive because demand has dropped. No one wants to be the last one holding that hot potato.
Discussion
At what interest rate do we hit the point that the entire federal budget (or at least all of the taxes receipted) does nothing but pay interest?
Never, because they'll always add spending on top of debt service...
That said, per the CBO, "federal debt held by the public is projected to [hit]...96% of GDP in 2023..." 🤡
I had heard that our debt hit >GDP a year or two ago.
I don't expect them to stop spending, but we will reach a point that the cost of the interest is greater than the tax money coming in. Yes, they will keep borrowing and/or printing, but things will get horrific when we reach that point.
Maybe god can come to help somehow.
In god we trust
No?
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