America’s debt ‘death spiral’ gives us $1 trillion reasons to act now

NEWYou can now listen to Fox News articles!

Interest on the federal debt is exploding much faster than the government predicted. It turns out Congress and the executive branch are as bad at projecting the future as they are at saving money. 

Yet much more alarming than the mathematical deficiencies of government is the rate at which America is running out of time to solve its debt crisis. 

While the Biden administration had projected a $1.6 trillion deficit for the current fiscal year, the Treasury has been borrowing at a $3 trillion annualized rate — almost twice the projected amount. 

BILL MAHER PANICS OVER TRUMP’S GAIN WITH YOUNG VOTERS: BIDEN MIGHT LOSE ‘BECAUSE HOT DOGS COST MORE’

This additional debt, issued at today’s interest rates, will increase the Treasury’s annual interest expense by over $100 billion. 

Higher interest rates mean the US is set to pay $1 trillion a year just in debt service. (iStock)

But today’s relatively high interest rates affect much more than just current deficit spending. This is because America doesn’t actually pay off debt, but only rolls it over. 

When it’s time to repay old debt, the Treasury simply issues new debt to cover repayment of what was originally borrowed, plus

View Source