Great article by Ryan McMaken of the Mises Institute.
A few key points from the article:
* During August, the federal government paid out $111 billion in interest on federal debt. That’s more than the federal government paid to the Department of Defense ($78 billion) and only $32 billion less than what the federal government spent on Social Security.
* All this is partly why the White House is so desperate to pressure the FOMC and the Federal Reserve into cutting the target policy interest rate at the FOMC’s meeting next week. The US Treasury faces a challenge of refinancing more than $9 trillion in US debt during the next year.
* There’s a big downside here for regular people. If the Fed starts forcing down interest rates further, that will require the Fed to buy assets with newly created money and that means more monetary inflation. That’s likely to translate into both consumer price inflation (i.e., food, energy, healthcare, insurance) and asset price inflation (i.e., home prices)
* No country has ever taxed itself in prosperity.
Read the entire article 👇
https://mises.org/mises-wire/federal-deficit-surges-again-trump-spending-accelerates
