What’s up with the explosion of federal debt in the last 4 months?

[Anonymous]

In only the last 3 months it went from 33 trillion to 34 trillion !!!

Now in the last 2 weeks it went up almost 1/2 a trillion!!

Is tax revenue plummeting and spending increasing?

Nobody is talking about it

[Anonymous]

I meant 32 trillion to 33 trillion ^^

[Anonymous]

Remember the MAGA GOP attempted debt default? This is because of that. Treasury had to use extraordinary measures to extend the default date as long as possible. Those measures include replacing TSP contributions with IOUs. Once the debt ceiling was lifted then they had to go back and fund them.

[Anonymous]

Anonymous wrote:Remember the MAGA GOP attempted debt default? This is because of that. Treasury had to use extraordinary measures to extend the default date as long as possible. Those measures include replacing TSP contributions with IOUs. Once the debt ceiling was lifted then they had to go back and fund them.

This. They're not spending more they just had to delay borrowing

[Anonymous]

It’s not also that the cost of debt servicing went up and we are also funding those costs with debt?

[Anonymous]

Anonymous wrote:It’s not also that the cost of debt servicing went up and we are also funding those costs with debt?

No, it’s not that because new rates only affect new debt.

[Anonymous]

Anonymous wrote:

Anonymous wrote:It’s not also that the cost of debt servicing went up and we are also funding those costs with debt?

No, it’s not that because new rates only affect new debt.

Most of the past debt is short term. It’s being refinanced at higher rates. Next year .. last years 2 trillion, this years 2 trillion and 10 trillion that matures is gonna be 5 plus percent rate plus the FED unwound a trillion this year at 5 and another trillion next year.. plus next years 2 trillion plus added in.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It’s not also that the cost of debt servicing went up and we are also funding those costs with debt?

No, it’s not that because new rates only affect new debt.

Most of the past debt is short term. It’s being refinanced at higher rates. Next year .. last years 2 trillion, this years 2 trillion and 10 trillion that matures is gonna be 5 plus percent rate plus the FED unwound a trillion this year at 5 and another trillion next year.. plus next years 2 trillion plus added in.

I did read recently where the majority of the Federal debt will have to be refinanced in the next few years. That is astounding to me. So when we went through all those years of really low rates.........no one thought to package this debt into 30 year Treasuries or even 10 year Treasuries. Who is going to be the buyer of all this debt? They need to show the bond market that
Government will tighten its belt or their refinancing costs will continue to climb.

[Anonymous]

Anonymous wrote:

Anonymous wrote:It’s not also that the cost of debt servicing went up and we are also funding those costs with debt?

No, it’s not that because new rates only affect new debt.

No… it is that.

[Anonymous]

(33/1.2)^(1/40) = 9%/yr for the last 40 years.

[Anonymous]

That’s Bidenomics

[Anonymous]

Anonymous wrote:
In only the last 3 months it went from 33 trillion to 34 trillion !!!

Now in the last 2 weeks it went up almost 1/2 a trillion!!

Is tax revenue plummeting and spending increasing?

Nobody is talking about it

Who cares? Prices are just going up because of supply chains and corporate greed. The Dems are doing a great job. /s

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It’s not also that the cost of debt servicing went up and we are also funding those costs with debt?

No, it’s not that because new rates only affect new debt.

Most of the past debt is short term. It’s being refinanced at higher rates. Next year .. last years 2 trillion, this years 2 trillion and 10 trillion that matures is gonna be 5 plus percent rate plus the FED unwound a trillion this year at 5 and another trillion next year.. plus next years 2 trillion plus added in.

I did read recently where the majority of the Federal debt will have to be refinanced in the next few years. That is astounding to me. So when we went through all those years of really low rates.........no one thought to package this debt into 30 year Treasuries or even 10 year Treasuries. Who is going to be the buyer of all this debt? They need to show the bond market that
Government will tighten its belt or their refinancing costs will continue to climb.

During all of those years of low rates they continued to issue debt to the public at different maturities and they didn’t just switch all issuances to 30 or 10 years because there are a variety of factors that go into the mix. Tax revenue is also down due to the Trump tax cuts that hit while he increased spending.

[Anonymous]

Not an expert, but I think the high interest rates result in higher debt payments, same as a higher interest rate on a credit card or mortgage results in higher payments for interest. This is what caps the amount that the Fed Reserve can raise interest rates, especially with the current amount of debt (about 33T?). Practically every day for the last week the treasury interest rates are going UP. Who pays the treasury interest rates? Answer: Government.

[Anonymous]

Anonymous wrote:
In only the last 3 months it went from 33 trillion to 34 trillion !!!

Now in the last 2 weeks it went up almost 1/2 a trillion!!

Is tax revenue plummeting and spending increasing?

Nobody is talking about it

Have you checked interest rates recently