This chart will scare the bejeesus out of us!

DC going bankrupt

Interest costs, QoQ rate of change, US federal government.  Over the year, interest expenses in the federal budget are changing from 11-14%, likely.  The Treasury does not have enough cash to cover the variance, and so Janet has been selling bonds to remit more earnings to Treasury.  Congress had gotten themselves into a peck of trouble, hence the scrambling for new taxes.



Why to volatility?
Taxes are collected from unstable streams as the wealthy have variable incomes.  This is especially true of capital gains. Second the cost of government, its multiplier, is well measured. It is measured much better than the Keynesians think. So DC has no hedge of its own against the government price index. Deflation makes the tax incomes more unstable.

This looks to be near the end for the current Nixon monetary system. get your banker bots ready.