Treasury just dropped a financial bomb, but Bidenomics means the worst is yet to come

"With all the chaos and heartbreaking loss of life around the world today, few noticed the Treasury Department drop a financial bomb: the deficit for fiscal year 2023 was $1.7 trillion, growing 23 percent in a single year as the Treasury used $879 billion just to service the federal debt. But Bidenomics means the worst is yet to come, and multi-trillion-dollar deficits are the new normal.

The impetus for these massive deficits is federal government spending, which tipped the scales at $6.1 trillion last year. Government receipts, meanwhile, were $4.4 trillion, woefully short of the $5 trillion previously forecasted. A slowing economy and counterproductive tax increases were key drivers behind the $457 billion drop in receipts from the prior fiscal year.
Elevated spending levels in 2020 should’ve been one-time emergency measures, but the Biden administration institutionalized $6-trillion budgets by simply replacing pandemic-era outlays with the Biden agenda....the $1.7-trillion deficit in the last fiscal year was really a $2-trillion deficit. It was reduced only in a technical sense by $300 billion when the Supreme Court blocked Mr. Biden’s student loan handout scheme. The Treasury has merely reallocated that money to be spent in fiscal year 2024 because the Biden administration is hellbent on achieving its unconstitutional student loan bailout......In other words, the unfunded spending has merely been moved from one ledger column to another. Of that $300 billion, tens of billions have already been allocated to selective student loan bailouts, while the rest will fund a broader bailout beginning next summer, known as the SAVE repayment plan, an end-run around the Supreme Court’s ruling against the Biden administration.....It has resulted in a truly unprecedented level of federal debt: now more than $33.5 trillion. The breakneck pace of borrowing is increasing almost daily, with the Treasury borrowing $500 billion just in the first three weeks of the current fiscal year, which began October 1.
Consequently, investors are demanding higher yields when lending money to the Treasury, which is increasing the cost to service the debt. As massive deficits continue growing the debt, gross interest outlays are exploding as new debt is issued at higher interest rates.
The icing on the cake is that the Treasury doesn’t actually pay off debt when it matures. It simply issues new debt to pay off the old, along with the interest." FB