SUSTAINABILITY: US Budget Deficit Hits $600 Billion In 6 Months, As Spending On Interest Explodes.

According to the latest Monthly Treasury Statement, in March, the US collected $210.8BN in receipts – consisting of $88BN in individual income tax, $98BN in social security and payroll tax, $5BN in corporate tax and $20BN in other taxes and duties- a drop of 2.7% from the $216.6BN collected last March and a clear reversal from the recent increasing trend…

… even as Federal spending surged, rising 7% from $392.8BN last March to $420BN last month, the second highest monthly government outlay on record…

… where the money was spent on social security ($85BN), defense ($58BN), Medicare ($75BN), Interest on Debt ($33BN), and Other ($170BN).

I’ve been warning about the interest payment bomb since George W. Bush was president, and that was more than twelve trillion borrowed dollars ago. Sure enough, now that interest rates are climbing, the debt bomb is indeed exploding — and is expected to overtake Defense spending as a slice of the budget pie around mid-decade.