Economic Crisis Ahead: Trillion Dollar Interest Payments on the Booming $34 Trillion Debt- 7 Ways it Hurt You and America

Craig HueyCurrent Events, Debt, Economics, Government, Congress, and Politics Leave a Comment

Interest on the U.S. national debt skyrocketing… and hurting you and your family.

Biden’s reckless overspending is creating historic debt—debt that has doubled since Biden took office in 2020.

And this debt means the federal government needs more taxpayer money just to pay off the interest on the national debt.

That’s tax money to China, bankers, and investors instead of roads and national defense.

Here are 7 Ways trillion-dollar interest payments hurt you, your family, and America…

1) Skyrocketing interest rates hurt taxpayers

Our interest rate payment on the national debt is now $800 billion in interest payments, and growing—that’s an interest rate of 2.97%. Putting everything in context, $800 billion is about 18% of the roughly $4.4 trillion in revenue the U.S. government collected in 2023.

That’s more than the Military budget, and money that’s wasted paying back loans we borrowed from China, the Fed, bankers, and investors.

Tax money sucks money out of the private sector that creates jobs and wealth.

It’s a massive transfer of wealth that’s unproductive and has profoundly negative consequences.

Taxpayer money pays this.

2) The debt and spending keep doubling

The amount of money spent toward interest on the national debt has nearly doubled from 2020 to 2023 and could double again by 2032, meaning an increasing amount of American tax dollars will have to go toward funding it.

The U.S. national debt reached $34.01 trillion for the first time ever in September, having already increased by around $5 trillion since President Joe Biden was inaugurated.

3) The unseen debt crisis

Bond yields rise as interest rates rise. So, all bonds, including US Treasuries (which are US government bills, notes, and bonds).

The taxpayers are spending about $875 billion to pay interest on the debt and $497 billion U.S. dollars on interest for the U.S. Treasury held by the public. That’s over 15% of the total annual federal spending.”

This unseen impact pushes prices—inflation—higher and slows our economy.

As the economy slows and federal tax revenue slows, the dollar itself will be seen as an increasingly risky investment as the federal deficit grows. This could lead to global de-dollarization, much higher inflation rates, and a loss of our position as the center of global commerce and investment.

Several countries are already trying to remove the U.S. dollar as the global reserve currency, and Brazil, Russia, India, China, and South Africa (BRICS) countries will stop using the dollar in international trade. One of the possible effects of de-dollarization would be hyperinflation as the dollars circulating abroad rush back into the U.S. market, increasing the U.S. money supply for Americans.

4) Declining U.S. Credit Rating

The credit rating for the U.S. was downgraded in August by top credit agency Fitch Ratings, citing future fiscal uncertainty and possible deterioration as buying U.S. Treasuries becomes a riskier bet. The lower credit rating means that the cost of taking on debt for the federal government will increase as investors demand better interest rates to account for higher risk.

5) Debt creates future problems

Higher debt crowds out other types of government spending that might be spent on more productive things such as cybersecurity, national defense, border defense, and better courts.

Being saddled with colossal debt also reduces the flexibility to undertake emergency spending should a crisis arise. Government debt is a national security issue: a default or some other adverse event could create political instability domestically and arguably make the US more beholden to foreign US debt holders, like China.

This debt and interest payments are unsustainable.

It’s critical that we stop the deficit spending.

Action Steps:

Take action this election:

  • Use our voter guide to vote only for candidates that will stop this madness.
  • Donate to our Turn America Around Fund to support one candidate to put spending under control.

There are 3 ways you can donate:

  1. You can donate online [Click Here]
  2. You can also call us at 615-813-6633 to donate between 10:00am and 3:00pm CST.
  3. Lastly, you can send a check made payable to Turn America Around Fund mailed to us at our office located at:

1313 4th Avenue North
Nashville, TN 37208

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