Americans will soon realize that the interest on our national debt is costing taxpayers a frightening percentage of our national income and wealth.
First, let's have a look at how we got here.
was $562 billion including government transfers. The amount actually paid out to holders of U.S. securities was $413 billion. Compare the $413 billion we pay in interest to holders of these securities to the annual budgets of other parts of the government. The State Department annual budget is"only" $35 billion and the Justice Department $39 billion.Here's why: According to the Congressional Budget Office, theon the national debt in FY 2021 was approximately 1.5%, historically a very low figure.
As interest rates rise, which they have in dramatic fashion in January, so will the interest rate paid on newly issued Treasury securities. While this is happening, our national debt is exploding.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Trump battled the Fed's rate hikes. Biden's betting on themUS central bankers will open their first meeting of the year already in broad agreement that they need to raise interest rates soon to slow the economy. They're likely not to hear a peep about it from the White House.
Read more »
Dow gives up 500-point gain and trades lower as Fed signals rate hikes ahead to fight inflationU.S. stocks fell in volatile trading Wednesday in the wake of the Fed's interest rate decision.
Read more »
Fed Interest-Rate Decision Tees Up March IncreaseThe U.S. central bank held short-term interest rates steady and signaled intentions to raise them in mid-March, the latest turn toward removing stimulus to temper elevated inflation.
Read more »
Global Markets Fall as Concerns Mount Over Fed TighteningGlobal stock indexes dropped and U.S. equity futures sold off, as investors worried about the speed with which the Fed would move to lift interest rates and otherwise tighten monetary policy.
Read more »
Stock Futures Rise After a Rocky Week as Fed Rates Call LoomsU.S. stock futures posted strong gains ahead of the Federal Reserve’s announcement that is expected to provide clarity on coming interest-rate rises—the prospect of which spooked markets this week.
Read more »
U.S. economy grew 5.7% in 2021, the fastest full-year rate since 1984The growth contributed to complications, including the highest inflation in 40 years and supply chain snarls as consumers hungry for products overwhelmed the global delivery system.
Read more »