quote:
Several days ago, we were the first to point out two new striking developments in the Dollar's crusade to lose reserve currency status: i) after hitting $1 trillion in late 2023, interest expense on US debt rose to a record $1.1 trillion in late March, and ii) while US debt is now rising at a pace of $1 trillion every 3 months, US interest expense is rising at a just as torrid $100 billion every 4 months (this interval will also shrink to three months very soon).

Compounding interest is a bitch when you are only servicing existing debt while constantly continuing to accrue more debt.

quote:
US Interest To Hit $1.6 Trillion By Year End, Making It The Largest US Government Outlay

And here we go... It was just last year that the CBO was predicting that debt servicing would be the single largest federal budget outlay by the end of the decade. It seems our over-eager RINOs and Marxist Dems in Congress took that as a challenge.

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They'll raise taxes, it's inevitable at this point. No one has a plan to cut the deficit.

The latter point is usually bullshitted by "we've cut spending" when what they really mean is "we've just cut back slightly on the growth of deficit spending".

To the former point, there's not enough out there to tax to pay the ever-increasing desire for Congress to spend their way into re-elections. MMT is the Amway of monetary theory. It preys on weak minds looking only at the surface of a subject then formulating some miracle resolution. Proponents get flummoxed as to why it doesn't work in the real world, but will create fanciful lies in order to attempt to bullshite its viability into existence.

The foundation of MMT relies on essentially creating a disposable currency. They believe they can create as much money as they want as long as they balance it by removing a similar amount from the economy through taxation. The problem is that money never really leaves the economy (Congress will just re-spend it) unless you literally destroy it once it's taken via taxation.

That planned obsolescence inherently devalues the currency.