This is a dire situation; the staggering $8.9 trillion government debt maturing soon is alarming. With a projected $1.4 trillion deficit in 2024, over $10 trillion in US government bonds need buyers, almost a third of the current federal debt. The Fed’s plan to cut rates adds to the challenge. The surging debt service costs, doubling since rate hikes began, highlight the unsustainable nature of the situation. Powell’s acknowledgment that we are “borrowing from future generations” emphasizes the gravity of the issue. Unsustainability looms large.
A record $8.9 trillion of government debt will mature over the next year.
Meanwhile, the government deficit in 2024 is projected to be $1.4 trillion.
This means that someone will need to buy more than $10 trillion in US government bonds in 2024.
That's nearly ONE THIRD of all… pic.twitter.com/rFm2D6u2A3
— The Kobeissi Letter (@KobeissiLetter) February 4, 2024