The US and UK’s massive and overwhelming burden of interest payments on their national debt and their inevitable spiral into economic and societal collapse
Government Spending MUST be cut by at least 10% ACROSS THE BOARD - IMMEDIATELY
DOING NOTHING TO CUT GOVERNMENT SPENDIN IS UNSUSTAINABLE - FISCAL SURPLUSES MUST BECOME THE NORM RATHER THAN THE EXCPETION COMPLETELY REVERSING THE MANTRA OF RUNNING EDFICITS OF 3-5% PER ANNUM.
Let me re-introduce the work of Reinhard and Rogoff
https://carmenreinhart.com/debt-to-gdp-ratios/
“Reinhart and Rogoff’s study, Growth in a Time of Debt, concludes that public debt-to-GDP ratios above 90% are associated with significantly lower economic growth, with median growth rates falling by approximately 1% and average growth dropping considerably more compared to lower debt levels.
That conclusion and the dta models used are subject to debate, but the logical conclusion remains – the higher the debt to GDP, the more that the interest on debt takes of taxes and the lower the potential growth in GDP.
From here for the USA:
“The federal government already spends more on debt interest than on Medicaid, national defense, or all non-defense discretionary programs combined. Now, with the 30-year Treasury yield surging past 5.19% — its highest level in almost 20 years — a leading fiscal watchdog is warning that what was already a crisis could turn into something far worse.
“According to the Committee for a Responsible Federal Budget (CRFB), interest costs consumed a record 3.25% of GDP and roughly 19% of all federal revenue in fiscal year 2025. If Treasury yields remain elevated at current levels — roughly 55 basis points above Congressional Budget Office projections across the yield curve — interest costs would grow 2.5-fold, climbing from $880 billion today to $2.5 trillion by 2036. That would push debt interest’s share of federal revenue to almost 30% — nearly triple its historical average over the past half-century.”
Debt servicing costs can only be reduced by a concomitant drop in the level of national debt – which, in turn can only occur with consecutive and long lasting FISCAL Surpluses.
US and UK national debt both exceed 100% of GDP and both are running even more fiscal deficits, rather than fiscal surpluses – mainly as a result of overly generous benefit systems, and fraud – combined with huge and rising defence budgets and ‘net zero’ spending.
“When the average interest rate on the national debt exceeds the economic growth rate — what economists call r>g — debt can begin rising rapidly and uncontrollably. Under the elevated-rate scenario, that gap would reach 75 basis points by 2036, making it increasingly difficult for even responsible fiscal policy to stop the spiral. The combination of high debt levels and a large gap between r and g can lead to a debt spiral — where rising interest costs boost debt, rising debt boosts interest rates, and rising rates boost interest costs further.”
“By 2027, under the high-rate scenario, interest costs would overtake Medicare spending to become the second-largest government program — eclipsed only by Social Security. By 2036, the government would be spending nearly as much on interest as on Social Security’s entire retirement program.”
For the Uk, from Brave AI:
“The UK’s r-g differential (the difference between the effective interest rate on government debt and the nominal GDP growth rate) is currently positive and elevated, meaning interest costs exceed economic growth.
“Current Differential: The Office for Budget Responsibility (OBR) forecasts the growth-adjusted interest rate (r-g) to be 0.5% for the upcoming fiscal year, rising to 1.4% by the end of the forecast period.
Implication: Because r > g, the UK requires a primary surplus of 1.3% to 1.5% of GDP to stabilize the debt-to-GDP ratio, a significant shift from the primary deficit of -1.8% in 2018-19 when growth outpaced interest rates.
Context: This environment, where borrowing costs exceed sustainable GDP growth, is a key driver of the UK’s fiscal squeeze, requiring substantial primary surpluses to prevent debt from rising further.
The UK -as opposed to the US is already heavily taxed and regulated with destructive ‘net zero’ policies exacerbating the difficulties with generating ANY economic growth at all.
“Current Differential: The Office for Budget Responsibility (OBR) forecasts the growth-adjusted interest rate (r-g) to be 0.5% for the upcoming fiscal year, rising to 1.4% by the end of the forecast period.
Implication: Because r > g, the UK requires a primary surplus of 1.3% to 1.5% of GDP to stabilize the debt-to-GDP ratio, a significant shift from the primary deficit of -1.8% in 2018-19 when growth outpaced interest rates.
Context: This environment, where borrowing costs exceed sustainable GDP growth, is a key driver of the UK’s fiscal squeeze, requiring substantial primary surpluses to prevent debt from rising further.
Politicians MUST reduce spending by cutting ALL benefits by at least 10% and by finding a cure for the effects on mental and physical health of the inflicted on millions OF Brits by incompetent politician and their sycophantic heath ‘authorities. Cancer rates and the falling birth rate bear testament to second round impacts of this toxic experiment that will plague the UK and US for years to come.
Onwards!
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UK second or triple or double bankruptcy is the plan. It will make people accept the loss of their rights and their 'freedom': if there is still anything left of these. To be a debt slave has already been accepted. Maybe they plan also a civil war