patrick.net

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The Federal Reserve policies contributed to the federal debt to GDP ratio reaching current level of 121, whereas it was around 106 right before the pandemic.

And I read using an AI application that about $660 billion was spent on federal debt service in 2023, compared to

$773 billion for the Pentagon
$887 billion for Medicaid
$302 billion for Veteran Affairs (about $151 billion of this went to VA disability and income security/pension payments)

I wonder how much in 2024 will go to federal debt service given that the "effective" or "average" interest rate for issued Treasuries has been steadily increasing since the Federal Reserve increased the Fed Funds rate from 0.25% (around spring 2022) to currently 5.5%, which is the highest its been since around 2001.

Wolfman at Wolf Street blog website has a recent and excellent article about federal debt compared to tax receipts.

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Congressional Budget Office forecasts that federal debt service will reach about $870 billion for fiscal year 2024.

Hence debt service will be greater than the Pentagon budget for fiscal year 2024.

Compare that to $497 billion for fiscal year 2022 when interest rates were much lower (7 year Treasury avg was about 2.5% in 2022 compared to currently 4.5%).

“If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.” - Thomas Jefferson

https://rudy.substack.com/p/we-did-it-all-over-again

People who could 'get by' on their SS checks just a few years ago have been pushed into not getting by any more.

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I was looking at the $870 billion forecast for federal debt service and the debt to GDP ratio of 122% (compared to 100% to 105% from 2013 to 2020).

I wonder if the uni party (all Democrats and few Republicans) are planning to let the Trump tax cuts expire and to not renew any of them.

The uni party thinks this will help to reduce deficits and consequently decrease debt service payments and the debt to GDP ratio.

That depends if they can keep spending increase no greater than the annual inflation rate.

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AD says

The uni party thinks this will help to reduce deficits and consequently decrease debt service payments and the debt to GDP ratio.

Restoring SALT deductions won't reduce the deficit.