Wednesday, March 13, 2024 11:03:59 AM
I am sure everyone read the article about our exploding deficit. The annualized receipts number is up .3% YOY, but Outlays are up 5%.
The deficit is up 17% and interest 18%. I am very surprised that interest paid annualized is holding near $1T. I would assume government doesn't accrue interest due, so until the bonds mature, no interest charged to government.
I looked but could not find how much debt is maturing by month, but I did find that $7.6T is maturing in the next 12 months. That is 20% of our current debt. Couple that with the facts 1. the FEDS have been the major buyers of the bonds in the past, 2. They are no longer buying, 3. There is not much interest in long term bonds (which have the cheapest interest rates, I would say we are going to see an explosion in both interest rates and interest paid.
Go FLOT!
The deficit is up 17% and interest 18%. I am very surprised that interest paid annualized is holding near $1T. I would assume government doesn't accrue interest due, so until the bonds mature, no interest charged to government.
I looked but could not find how much debt is maturing by month, but I did find that $7.6T is maturing in the next 12 months. That is 20% of our current debt. Couple that with the facts 1. the FEDS have been the major buyers of the bonds in the past, 2. They are no longer buying, 3. There is not much interest in long term bonds (which have the cheapest interest rates, I would say we are going to see an explosion in both interest rates and interest paid.
Go FLOT!
Trade the Charts and not the Heart - Expect the trend to
continue until it doesn't - Realtime is the real deal
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