Source: Fortune.com
Summary
The Congressional Budget Office (CBO) projects that the US national debt will reach 106% of GDP by 2030 and 120% by 2036, with annual debt interest costs doubling to $2.1 trillion by 2036. The Treasury Department’s average interest rate is expected to rise from 3.316% to 3.9% by 2036, accounting for half of the increase in interest costs. The Committee for a Responsible Federal Budget warns that the fiscal outlook is unsustainable, with debt approaching record levels and deficits remaining elevated.
Our Reading
The numbers tell one story.
The CBO’s projections show a concerning trend of rising debt and interest costs. The Treasury Department’s increasing average interest rate will contribute to this trend. The Committee for a Responsible Federal Budget warns of an unsustainable fiscal outlook, with debt approaching record levels. The threat of interest costs growing faster than the economy risks sending debt into escape velocity.
The Treasury Department’s bond yields are a ticking time bomb.
Author: Evan Null
