Part 4/11:
Most debt issued post-2020 is variable-rate, meaning that as interest rates climb, so do debt servicing costs. Unlike fixed-rate mortgages, which lock in payments for long periods, most government and corporate debt must be refinanced frequently—annually, quarterly, or every few years. This means that every debt has the potential to become significantly more expensive.
For the federal government, which relies heavily on borrowing, this has led to skyrocketing interest payments. In fact, projections suggest that over the next decade, interest on national debt could surpass the entire military budget, diverting enormous sums away from other critical public investments.