After all this situation, what is the United States still hard-mouthed? Recently, some good deeds are settling accounts for the United States, and one of them who likes to mess with it is Musk.
One X user posted on Tuesday quoting a tweet from Musk in October 2021: "The U.S. Treasury debt is $28.9 trillion, with an average taxpayer burden of $229,000. Even a 100% tax on all 'billionaires' would be a drop in the bucket. Musk responded that the U.S. national debt has increased by another $4 trillion since then.
Dogecoin co-founder Billy Marcus posted sarcastically: "If Musk gives up his entire net worth to pay off the national debt." Then the US national debt will be $32.864 trillion, not $33.111 trillion. Musk responded: "Exactly. The only way to cover the deficit is to squeeze everyone dry. Marcus replied: "The American dream is to pay 100% taxes and live in a shoebox." ”
I pinched my fingers when I was idle, according to the US Treasury,
The weighted average interest rate on total outstanding debt at the end of June was only 2.76%, the highest level since January 2012. The department's data shows that this figure is up from 1.80% a year ago, and if the Fed does maintain higher rates "longer," the combined rate on debt will exceed 4% in a year.
If the United States continues to raise interest rates, or if the interest rate of 5.5% remains unchanged, then about a year later, that is, from the second half of next year, the average interest rate on US Treasury bonds will reach as low as 4%. Then the interest expense of the national debt in one year will exceed $1.3 trillion.
Of course, this is still calculated when the size of the national debt remains at the level of 33 trillion yuan, in fact, the interest expense of the US national debt in fiscal 2022 is 470 billion US dollars, and by 2024, it will increase the interest expense by more than 800 billion US dollars.
In addition, according to the Federal Budget Accountability Commission, the deficit in fiscal year 2023 may reach about $2 trillion. At this rate, the size of the national debt caused by the increase in deficits and interest rates will need to increase by about 3 trillion yuan per year.
According to data compiled by Torsten Slok, chief economist at US asset manager Apollo, $7.6 trillion will expire next year, which is at an all-time high.
Then next year, 2024, the election year that will come in three months, the due national debt, plus new interest expenses, plus the fiscal deficit, the United States is likely to face a deficit of 10 trillion national debt, either find someone to buy it, or print another ten trillion. And to be honest, no one can afford to buy US bonds of this level.
The richest country has been dumping US debt for the past year. Now in such a situation, I can calculate how much famine the United States has pulled, but I really can't calculate that it is all this time, what is the United States still hardening?
