“Last month, as the US midterm elections approached, Deutsche Bank analysts released a calculation that should have made American voters wince. It shows that the US government currently pays $1.43bn each day (yes, day) to service its public debt — 10 times more than any other G7 country (Italy is a distant second in this grim league).”
USAGOLD note: FT’s Gillian Tett points out that interest on the national debt will “triple in size to nearly $1 trillion by 2028.” The impact of that convergence (rising rates and ballooning public debt), however, will hit the economy and financial markets long before 2028. A few weeks ago, we published a Chart of the Day on the long-term relationship between the price of gold and growth in the national debt. That relationship is not accidental . . . .