—6.2% of GDP. Interest payments absorb 57% of revenues
It feels like the financial situation is getting out of control
The Kobeissi Letter @KobeissiLetter
This is absolutely insane:
Annual US government spending reached a MASSIVE $6.5 trillion in May, just $1.1 trillion below the March 2021 record.
The government total outlays have DOUBLED in just a decade.
To put this into perspective, this is more than the size of most world economies except the US and China.
Meanwhile, the US budget deficit hit $1.7 trillion, or 6.2% of GDP over the last 12 months.
In the past, such levels of spending have only occurred during major crises.
What’s the long-term plan here?