The US has a $36.5 trillion National Debt and annual Federal Revenue of $5 trillion. The US Debt to GDP is 120%. US Federal Spending is $7 trillion per year. The Interest on the Debt is $1.55 trillion. The current Fed rate is 4.25% to 4.50%.
We need to reduce the interest on the Debt to fund automation to increase productivity and data reliability.
The US needs to balance the Federal Budget and establish a Surplus Account to pay down the National Debt. All Federal Agencies that exist to support subsidies should be eliminated. Grants to States should end and States should fund their own needs. National Parks, Forests and all but military bases and proving grounds should be given back to the States.
Trump has an Agenda to reduce Federal Spending by $2 trillion and increase US Oil and Natural Gas production to reduce the global cost of Oil, Gasoline and Natural gas to reduce global inflation. Trump plans to increase US exports of US Oil and Natural Gas to lower the US Trade Deficit. Trump plans to deport 10,000,000 Illegals who entered the US from 2021 to 2025 to provide jobs for US citizens. Trump plans to lower corporate taxes from 21% to 15% to allow US Companies to increase wages and allow foreign companies to build more plants in the US to employ US workers. Trump wants to lower US Citizen Income Taxes to offset the damage done by inflation that occurred from 2021 to 2025.
The interest on U.S. debt is determined by the interest rates on Treasury securities and the amount of debt outstanding, according to the Peter G. Peterson Foundation. The Federal Reserve plays a key role in setting interest rates, which impact the cost of borrowing money for the government and individuals.
The
U.S. Treasury issues debt to borrow money when government spending exceeds
revenue.
The
Bureau of the Fiscal Service manages the debt, including selling it and paying
it back.
The
Federal Reserve sets interest rates, including the federal funds rate, which
affects the cost of borrowing money.
The
Federal Reserve raised interest rates to fight inflation after the
pandemic.
The interest costs on the debt are a budgetary cost for the government. When interest rates rise, interest costs increase, making the debt a bigger drain on the budget.
Who owns the U.S. debt? There are two basic categories of debt owners: 1) the public, which includes foreign investors and domestic investors and, 2) federal accounts, also known as "intragovernmental holdings."
The Stock Market is in competition with the Treasury Bills. Some Investors buy Treasury Bills to get a guaranteed return on investment to balance their investment portfolio. Most investors are in 401K plans that allow employees to invest in stocks to earn enough to beat inflation.
Debt held by the public measures the government’s borrowing from the private sector (including banks and investors) and foreign governments. CBO estimates that at the end of fiscal year 2024 (September 30, 2024), debt held by the public was $28.2 trillion.
How do countries buy U.S. dollars? Global consumers convert local currency into dollars by selling their currency to buy dollars to make the payment. When the government or American corporations issue bonds to raise capital and bonds are purchased by foreign investors, those payments are made in dollars.
Responsible governments hold their expenses and balance their budgets to avoid debt. The US Federal Government needs to reduce expenses back to $5 trillion to match $5 trillion in revenue and may need to cut the grants it sends to States.
Norb Leahy, Dunwoody GA Tea Party Leader
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