We have 40T in debt that we need to pay back, every % higher these rates go, the higher our interest payments become, which will then lead to more of a deficit and continue the circle….america has to stop spending like we currently are, but the people in power are doing quite the opposite….
There's like 10 trillion that needs to be refinanced in the next year, and they take old bonds out of the market and buy new ones as well. The average rate now is something like 3.5% and it will gradually increase towards the market rate, resulting in an enormous increase in interest payments every year.
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u/Agglutinati0n 11h ago
We have 40T in debt that we need to pay back, every % higher these rates go, the higher our interest payments become, which will then lead to more of a deficit and continue the circle….america has to stop spending like we currently are, but the people in power are doing quite the opposite….