People tend to ignore their government’s finances because they seem more complicated than personal finances, yet they are exactly the same. They are nothing more than ledgers of income, expenses, debts, and assets. Once this fact is accepted, investors can then make their investment decisions based on where these accounts are and how they affect the broader market and industries. On that note, today’s issue comes from the entire national debt.
The issue is not the $36 trillion in debt but the amount of interest generated from this debt level, which has now mounted to a high of $1.1 trillion. The issue with this interest expense is that it has now surpassed the national defense budget, and that’s like saying someone’s credit card interest expense is larger than their home insurance payments.
