America Is Borrowing $3 Billion a Day Just to Pay Interest
The United States has reached a point where the government is spending more than $1 trillion annually simply to pay interest on money it has already borrowed. The Treasury Department reported that the federal deficit reached $1.99 trillion for fiscal year 2026, an increase of $217 billion from the p
Source: Armstrong Economics
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DW NOTE
The Treasury is borrowing $3 billion daily to service debt. That means a fifth of the fiscal deficit — $1.1 trillion of $1.99 trillion — is now interest expense alone. At a 5.12% 10-year yield, this isn't a policy problem the Fed can print away: higher rates to contain inflation make the interest burden worse, lower rates to ease the burden reignite inflation. The US has engineered a fiscal trap with no monetary exit.