The historic breakout takes place just weeks before the interest on total Federal debt is set to hit $1 trillion, surpassing how much the US spends on defense – and soon after – every other outlay category.
The total US national debt spiked by $1.58 trillion since the debt ceiling was lifted, and by $2.16 trillion from a year ago, to $33.04 trillion, according to the Treasury Department’s figures this afternoon.
A stunning amount of new debt that is getting piled on in a stunningly short amount of time.
This $2.2 trillion added debt over the past 12 months reflects the current tsunami of deficit-spending. Deficit spending is stimulative for the economy, so this is great news for economic growth – if that’s all you look at – but this additional demand also adds fuel to inflation, and the debt pileup is an intractable horror show for the future.
If the government runs those kinds of deficits where the debt spikes by $2.2 trillion in 12 months, what will the debt do if there ever is an economic downturn, when deficits typically blow out further as outlays rise and tax receipts plunge? That was a rhetorical question.