The federal interest burden has reached a new height, exceeding even the 1991 record, but **** ysts warn the risks **** ociated with servicing the ever-growing national debt today are much higher than they were 35 years ago, **** ysts warn.
A recent **** ysis from investment management firm Doubleline noted that in 2025, the federal net interest payment on the U.S.'s now-$40 trillion national debt reached 18.5% of revenue, surpassing 1991's record 18.4%. That means the U.S. is collecting nearly 19% of all taxes and revenue just to pay off interest on its ballooning debt, equivalent to $1.25 trillion—more than the entire 2026 defense budget.
Growing interest payments create a cycle: the government must borrow more just to cover the interest, leaving it less flexible to spend on infrastructure, education, and other investments that drive growth.
The amount of money needed just to pay the interest on America's debt has swelled over the last decade as interest rates have grown, with interest expense as a percentage of revenue tripling since 2015, according to global market commentator the Kobeissi Letter, citing the Congressional Budget Office, which predicts interest expense levels to climb to 25% by 2036.
"The US debt crisis is in uncharted territory," the Kobeissi Letter wrote on a social media post. "These projections **** ume no major slowdown, recession, or significant rise in Treasury yields over this period."
#interest #kobeissi #letter #record
A recent **** ysis from investment management firm Doubleline noted that in 2025, the federal net interest payment on the U.S.'s now-$40 trillion national debt reached 18.5% of revenue, surpassing 1991's record 18.4%. That means the U.S. is collecting nearly 19% of all taxes and revenue just to pay off interest on its ballooning debt, equivalent to $1.25 trillion—more than the entire 2026 defense budget.
Growing interest payments create a cycle: the government must borrow more just to cover the interest, leaving it less flexible to spend on infrastructure, education, and other investments that drive growth.
The amount of money needed just to pay the interest on America's debt has swelled over the last decade as interest rates have grown, with interest expense as a percentage of revenue tripling since 2015, according to global market commentator the Kobeissi Letter, citing the Congressional Budget Office, which predicts interest expense levels to climb to 25% by 2036.
"The US debt crisis is in uncharted territory," the Kobeissi Letter wrote on a social media post. "These projections **** ume no major slowdown, recession, or significant rise in Treasury yields over this period."
#interest #kobeissi #letter #record
2 months ago
