On December 9th, according to The Kobeissi Letter, the U.S. Treasury issued a record $25.4 trillion in T-Bills (note: T-Bills are short-term, zero-coupon bonds with maturities of one year or less issued by the U.S. Treasury) over the past 12 months, bringing the Treasury's total issuance to a record $36.6 trillion. This means that T-Bills currently account for 69.4% of total U.S. Treasury issuance, approaching historical highs.
This means that the U.S. government is increasingly using debt maturing in a few months to finance its long-term debt. Consequently, interest payments on public debt now move almost in tandem with the Federal Reserve's policy rate. If inflation picks up again and the Fed is forced to raise rates once more, interest costs will climb to unprecedented levels.
The US debt crisis is worsening.
