The American debt crisis enters a new phase:
The U.S. Department of the Treasury issued a record $25.4 trillion in Treasury bonds over the past twelve months, bringing its total issuances to a record $36.6 trillion.
This means that Treasury bonds now represent 69.4% of total Treasury issuances, a figure that approaches its all-time high.
The percentage has increased by 27.6 percentage points since its lowest level in November 2015.
In other words, the U.S. government is increasingly funding its long-term obligations with debt that matures in just a few months.
As a result, the interest costs on government debt are now nearly synchronized with the official interest rate of the Federal Reserve.
If inflation returns and the Federal Reserve has to raise interest rates again, interest costs will rise to unprecedented levels.
The American debt crisis is worsening.
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