Bonds: One trillion dollars in interest payments per year - the USA's dangerous debt gamble
Every day, the US pays three billion dollars in interest. The government is financing its debt more and more through short-term debt instruments - with high risks for the entire financial system.
The US Treasury Department is increasingly relying on short-term debt instruments, known as Treasury Bills (T-Bills), to finance its growing debt. This shift away from longer-term bonds has raised concerns among experts, who warn that it increases the risk of refinancing and makes the country's finances more vulnerable to interest rate shocks.
The Congressional Budget Office (CBO) estimates that net interest payments could exceed $1 trillion this year, surpassing defense spending. The US debt clock is approaching $40 trillion, equivalent to 15 times Italy's economic output.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
