The Silent Price You’ll Pay for Our Mounting National Debt

After an unexpectedly tightening Federal Reserve hiked interest rates by 75 basis points last week for the third consecutive month, all eyes were on markets and the economy. Few, however, were paying attention to the impact that continued inflation and higher interest rates will have on Uncle Sam.

That’s surprising. Gross interest expenditure on the government debt was $88 billion in August, according to the Monthly Treasury Statement. That’s $1.06 trillion a year. Interest rates on government debt are skyrocketing, heading into what economists call the “doom loop” — the vicious cycle in which government borrowing to pay interest generates more interest and more borrowing. The Silent Price You’ll Pay for Our Mounting National Debt

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