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The U.S. Treasury data has revealed that the country’s net interest payments on debt as a percentage share of federal revenue reached 18.7% in January, only 0.2% below the 1992 ATH of 18.9%. The interest expense hit a record $1.2T over the last 12 months. The data also showed that the share had doubled in just 18 months as interest costs skyrocketed. The U.S. federal debt has increased over the last 100 years from $395B in 1924 to $35.46T in 2024. Additionally, the U.S. debt-to-GDP ratio surpassed 100% in 2013, when both debt and GDP were approximately $16.7 trillion.  According to the U.S. Treasury, it costs about $392B to maintain the U.S. debt as of January 2025, which is 16% of the total federal spending in fiscal year 2025. Net interest costs as a percentage of federal revenues are projected to reach 34% by 2054, assuming no recession will occur over this period.  U.S. debt-to-GDP ratio indicates a looming repayment crisis How bad has the US debt crisis become? US net interest payments as a percentage of federal revenue reached a whopping 18.7% in January, the highest since the 1990s. This is just 20 basis points below the all-time high of 18.9% posted in 1992. Furthermore, this share has… pic.twitter.com/nG8ATTgUyW — The Kobeissi Letter (@KobeissiLetter) March 1, 2025 The U.S. Treasury’s data revealed that the average GDP for fiscal year 2024 was $28.83T, which was less than the U.S. debt of $35.46T, resulting in a Debt to GDP Ratio of 123%. Consequently, the higher Debt to GDP ratio indicated that the U.S. government will have greater difficulty in repaying its debt, suggesting a looming repayment crisis. As per the data on February 27th, the debt held by the public was at over $28.85 trillion, intragovernmental holdings stood at $7.36 trillion,…

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Filed under: News - @ March 2, 2025 10:23 am