The U.S. government is just five years away from the point of no return. With the national debt spiraling quickly out of control, there are only a few years left before every single dollar the government borrows will go toward funding interest payments on the national debt. But what is the real red flag is that starting in 2024, when the primary deficit drops to zero according to the latest projections, all US debt issuance will be used to fund the US net interest expense, which depending on the prevailing interest rate between now and then will be anywhere between $700 billion and $1.2 trillion or more. In short: in the stylized cycle of the US “Minsky Moment”, the US will enter the penultimate, Ponzi Finance, phase – the one in which all the new debt issuance is used to fund only interest on the debt – some time around in 2024. Once we reach that point, the government will have reached the “death spiral,” a point at which the complete collapse of the government and financial system is imminent.
https://www.zerohedge.com/news/2019-05-15/we-have-3-years-national-debt-death-spiral
Is this true? According to my latest projection, interest won't ever exceed the deficit. I enjoy doomporn as much as anyone but this is nonsense. Interest can be manipulated to some extent by the Fed, it can even drop to zero or be negative. I think we will reach a death spiral point, but it isn't imminent.
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