Part 6/10:
Despite assurances that U.S. debt would always be manageable due to the country's unique position—borrowing in its own currency and issuing the world’s reserve currency—rising interest rates and persistent deficits are presenting a serious threat to fiscal health. The average interest rate on marketable U.S. debt has surged from 1.84% to approximately 3.36%, triggering a significant rise in borrowing costs with projections indicating that interest payments could exceed $950 billion by 2025.
The ramifications are profound, with the U.S. now spending more on interest payments than national defense—an unprecedented situation that is expected to worsen as refinancing challenges loom amidst a $14 trillion debt requiring rollover in the next few years.