US Interest Costs Too High

Let’s start this post off with a little bit of fundamental debt analysis in regards to how much the US government is expending with the current rise in interest rates. We know by now that this rate move is one of the largest in history in both size and veracity. We also know that the co-symbiotic relationship between the private Federal Reserve and the public US Treasury is something rarely touched upon in main stream media. Here at Econemotions we have been highly critical of this relationship and the largesse that it produces. As Andrew Jackson fans and Austrian Economics at heart, we share a disdain for central banking and its manipulative forces, but nonetheless, we know and have come to understand to take the system for what it is, just a simple monetary mechanism.

A mechanism that facilitates the grease that lubes the cogs in our economic wheels, whether we agree or disagree with the mechanism, doesn’t matter. What does matter is that we understand it, that we recognize when its constructs become too tightly wound or too loosely unwound. For us here this next chart clearly paints a disastrous picture of never ending debt and the inverse relationship that seems to now exist in regards to the utility function of debt in regards to GDP: