BlockBeats News, December 9—According to The Kobeissi Letter, over the past 12 months, the US Treasury has issued a record $25.4 trillion in T-Bills (note: T-Bills are short-term zero-coupon bonds issued by the US Treasury with maturities of 1 year or less), bringing the total Treasury issuance to a record $36.6 trillion. This means that T-Bills now account for 69.4% of the total US debt issuance, approaching historical highs. This indicates that the US government is increasingly using short-term debt that matures in a few months to finance its long-term obligations. As a result, the interest payments on public debt now fluctuate almost in sync with the Federal Reserve’s policy rate. If inflation rises again and the Fed is forced to raise rates further, interest costs will climb to unprecedented levels. The US debt crisis is intensifying.
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