Townstone Financial

Let’s start with some facts: 1. Interest Payments - Analysis from Bloomberg last month estimated that annualized interest payments on the US government debt pile topped $1 trillion. This is consistent with the $981 billion that the U.S. Bureau of Economic Analysis reported for July 1st, 2023. 2. The 2023 budget of the United States federal government has total expenditures at around $6 trillion 3. The cost of servicing US government debt is about 16% of total US government spending That 16% could be going to fixing roads and schools, providing healthcare, or anything else you want your government to be doing. Instead, it’s going towards nothing, just paying interest. If you want to look on the bright side, at least treasury debt isn’t at 100% of domestic GDP… but take that with a grain of salt. The data from the Fed for 2023 isn’t available yet, but as of 2022: total federal debt was 94% of the total GDP. The only other time it was this high was during WWII and the economic boom that followed allowed th