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posted ago by Narg ago by Narg +30 / -0

We know Trump has a plan for dealing with this problem . . . I'd say it'll be fun to see exactly how this plays out (it usually is, partly because Trump's plans often turn out to be different from what everyone expects) but in this case I don't see much "fun" being likely until the plan is finished and America is back on track.

Hope I'm wrong.

The column includes plenty of charts, which I can't reproduce here.

https://quoththeraven.substack.com/p/absolute-train-wreck-us-adds-481

Current Trends

The government hit the debt ceiling back in January which blocked any net new debt from being created from January to June. Once the debt ceiling was lifted, the government wasted no time in catching up for all the months where borrowing was frozen. Over the last 7 months, the government borrowed an incredible $2.28T!

Note: Non-Marketable consists almost entirely of debt the government owes to itself (e.g., debt owed to Social Security or public retirement)

January was a very small month, but the chart below shows that $2.3T was borrowed for all of 2025. This follows $2.6T and $2.2T in 2023 and 2024. Needless to say, there seems to be a new standard of $2T+ annual borrowing. This will likely mean adding $10T every 4 years at current rates. More than likely that is going to accelerate going forward.

The Treasury has strengthened their cash position to $1T.

The chart below shows both the maturity of the debt and average interest rate. The blended interest rate has stabilized around 3.1%. More concerning is the average maturity of the debt has dropped to 5.8 years. This is the lowest average rate since 2021. Lower average maturity means the government will have to roll over more debt each year. It increases the risk if the appetite for US debt starts to slow.

The true danger facing the government is still in the massive interest currently being paid on the debt. It has finally crossed over $1T per year! As shown in the chart, about half of this is concentrated in Notes, which is debt maturing between 2 and 10 years.

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