US Hits Record High Interest On National Debt

As the cost of borrowing for the federal government, which now owes $32.68 trillion, increases, the rapid rise in interest rates over the last year might have unintended consequences for the U.S. government’s finances.

According to the most recent projections from the Congressional Budget Office (CBO), interest payments on the national debt are expected to be the fastest-growing element of the government budget over the next three decades.

Interest payments are projected to quadruple from over $475 billion in the fiscal year 2022 to a staggering $1.4 trillion in 2032 due to increasing interest rates, strong inflation, and a continuous increase in the national debt. Interest payments are expected to reach $5.4 trillion by 2053, surpassing spending on social programs, military, and healthcare combined in the United States.

By 2030, interest payments on the national debt will account for a historic 3.2% GDP. GDP is the most comprehensive measure of commodities and services generated in the country. By 2053, that proportion will have increased almost thrice, reaching 6.7%.

Interest rates are already at their highest point since 2001 after the Federal Reserve raised them 11 times in only 16 months. Fed meeting minutes published recently suggest that more rate rises might be on the table this year.

According to Ron Paul, writing for, the average monthly cost of living in the United States is $709 more now than it was two years ago, despite numerous interest rate hikes by the Federal Reserve. This is why there is more than a trillion dollars in credit card debt.

The Federal Reserve will be under additional stress to perform the impossible if private and governmental debt keeps rising.

Paul explains that the debt-based economy the Federal Reserve helped construct will eventually collapse when the US dollar loses its standing as a reserve currency. This will only deepen existing political divides and might possibly spark violent conflict.

Only by convincing people that the welfare-warfare state cannot deliver on its promises can freedom be restored without triggering a political and economic crisis.