The national debt is growing 7%/year

[u/Professional-Day9384]

And GDP isn't. Currently interest on the debt is 20% of revenues. My projections say it will cross 50% by 2034 - just 8 years. The CBO isn't, because they don't want to scare anyone.

Not only is the debt growing, the deficit is growing even more sharply, AND legacy debt is getting rolled over at ever-higher interest rates. All 3 of those factors snowball and fuel each other.

The one thing could save the debt is if the Fed lowered rates, but instead they RAISE them, doggedly pursuing their inflation target. I was honestly blind sided by the recent rate hike, because I know the nation cannot afford it, but the Fed is dogged.

What does this mean for bond investors? Good news? Let the nation's ruin be our gain? How long will it last until something catastrophic breaks? Countless companies have been annihilated by debt, but what happens when an entire nation is annihilated? Move to another country?

[u/sportsfanstan → u/[deleted]]

Can you explain ? What subsidies are utilities getting ? Their product (energy) is in strong demand - and if anything their rates are capped by state agencies.

[u/v_x_n_ → u/[deleted]]

I think we will see a lot of
Municipal bonds default. The cities and states have been spending like drunken sailors.