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  • Curse of Easy Money: U.S. Government Interest Payments v. Tax Receipts, Average Interest on Treasury Debt, & Debt to GDP

Curse of Easy Money: U.S. Government Interest Payments v. Tax Receipts, Average Interest on Treasury Debt, & Debt to GDP

August 31, 2023

by Wolf Richter Wolf Street

Spiking Interest payments will hopefully, knock on wood, force the drunken sailors in Washington to go through detox.

The gigantic US government debt is now approaching $33 trillion, amid a tsunami of issuance of Treasury securities to fund the mind-blowing government deficits and roll over maturing securities. At the same time, the Fed has hiked its policy rates where borrowing with short-term Treasury bills costs the government now close to 5.5% in interest, and borrowing longer-term costs over 4%.