U.S. deficit up 170%, 2023 deficit now $1.39 Trillion.

 COST OF FINANCING DEBT SKYROCKETING

FOREIGN HOLDERS LIQUIDATING

The U.S. debt and deficit is now on a path to unsustainability. If the present trend continues, it will spell serious trouble for the U.S. economy. There really doesn't seem to be much serious concern in Washington. It appears Washington is ramping up to engage in more spending without any end in sight.

At present 30% of federal government debt is held by foreign countries. The biggest holders are Japan and China, both now in the process of major liquidation of this debt. Much of this is caused by uncertainty of the U.S. economic situation and the fear of some sort of sanctions making recovering this debt unavailable. There are other nations lowering their risk in U.S. debt. Most are replacing this debt with the purchase of physical gold. 

The July treasury auctions placed $102 billion of bonds. It is expected that the next auction will be for even more. 

This all translates into a fast growing bill to service this debt as much of the new debt is at higher rates. The cost of servicing the debt is expected to be up 25% to $652 Billion. 

All this is likely to translate into higher interest rates to entice buyers to assume the higher risk of this debt. It is anticipated that just servicing the debt may account for 25% of future budgets.

Higher interest rates and higher inflation is possibly going to set off the next round of labor disputes, higher prices and the risk of hyperinflation. A snowball effect that is not easily stopped without severe economic medicine.

All this, while Washington is obsessed with more spending for the military, foreign aid and expansion of social programs. A recipe for disaster.