FY2023 Cumulative Net Interest, up 40% from same period last fiscal year

FY2023 Oct-Dec Cumulative Net Interest; $144 Billion

VERSUS same period, last fiscal year;

FY 2022 Oct-Dec Cumulative Net Interest, $102 Billion

Source; Monthly Treasury Statement

Da Math……

Up $42 Billion, nearly a 40% increase

FY 2022 Total Net Interest; $475 Billion

Estimated FY2023 Net Interest; $475 Billion PLUS 40% = $665 Billion!!!!!!!!!!!!

——————

Folks, if we were to convert FY2023 Estimated Receipts, Outlays, Deficit, and Public Debt/Net Interest to HOUSEHOLD figures

2023

Receipts……Estimated take-home pay; $46,380
Outlays……..Estimated Household expenses; 57,920
Deficit……….Estimated shortfall; $11,540

Public Debt….Amount owed on no-limit Credit Card; $2.5 Million

Net Interest….MINIMUM payment on no-limit Credit Card; $6,650……THAT HURTS!

 

I keep saying that government spending doesn't need to be trimmed, or even cut... It needs to be cut all the way to the bone! Massive de-governmentalization, with tens, possibly hundreds of thousands of people getting thrown out of work is gonna hurt, but that's what you get when you go for that cushy job where merely showing up every once in a while, is enough to keep yourself employed.

 

Nothing POTUS/Congress can do about our current Net Interest, and tomorrow’s public debt rollovers at higher coupon rates.

Also, a 50/50 balanced budget wouldn’t stall the growth of the Public Debt, and that’s because SSA/Treasury are gradually converting Medicare/SS Trust Fund’s iou securities to marketable securities.

 

In addition to the above, it is not the size of the public debt that matter most, it is the forthcoming 3rd largest expenditure……Net Interest!

Why’s that?

Anyone?

 

I’m interested in knowing more about your massive de-governmentalization.

IMO, de-centralization is “a must do”

 

@nopartisanbull What is your solution?

 

FY2019 Net Interest; $376 Billion
Estimated FY2023 Net Interest; $665 Billion

The rapid growth in interest payments is an infeasible problem.

 

Even if you kept the spending, but shifted it to the states.

 

I'm not disagreeing. In my opinion when there is 2/3rds agreement in US politics on a particular issue and we finally have some representatives of courage in place, mountains move. You are from a different third of the political spectrum, so, I find your point of view interesting as I search for things were there is something approaching 2/3rds agreement.

Our Fed Debt is at $30T so each 1% of interest = $300B in annual debt service, so it's easy to see how borrowing rates going up by three percentage points increases our annual borrowing costs by a Trillion dollars. The effective fed funds rate has climbed by four percentage points in less than a year, so this is not out of the question. I share your concern.

In your mind, what are some workable solutions?

 

Interesting comparison

 

That’s how many foreign central governments have balanced their books in the 90’s…they’ve simply passed the buck to their states.

Let’s start with Medicaid.

 

Congress raised taxes to fund the 1956 Highway Act

Congress raised the fuel tax to fund their 1982 Transportation Bill

AND IRONICALLY…..

Dec 2015……The Republican-controlled Congress passed an UNFUNDED $300 billion infrastructure bill……borrowed money!

Thus, today, are there any workable/common sense solutions?

 

Did the Democrat President sign it into law?

That was my question to you. What's your opinion?