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High but manageable

Nov 27, 2023

Over the last 12 months, the US Treasury has paid 981.3 bn USD of interest charge on the US sovereign debt, the highest nominal amount since WWII. While the absolute figure is scary, we need to take into account that the US economy has grown substantially over the years and is able to absorb this interest charge, at least for now. As a % of GDP, the interest charge has indeed increased to 3.55% but is still within the historic range.

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