Congressional Budget Office: "US will add $19 trillion to the national debt in the next decade" Annual Interest Payment To Reach $1.4 Trillion

From the New York Post, February 16:

The US is on target to eclipse previous economic forecasts and add a staggering $19 trillion to the national debt in the next 10 years, according to the nation’s budget scorekeeper. 

In a report released on Wednesday, the Congressional Budget Office warned that one way or another, through tax hikes or spending cuts, the country’s fiscal course needs to be corrected. 

“Over the long term, our projections suggest that changes in fiscal policy must be made to address the rising costs of interest and mitigate other adverse consequences of high and rising debt,” CBO Director Phillip Swagel wrote in a letter released along with the report.

The CBO projects that within a decade, the national debt in relation to the size of the economy will rise to unprecedented levels. Debt held by the public is projected to reach 118% of GDP by 2033 — the highest level ever recorded – according to the CBO.

The CBO’s new projections show $3 trillion more will be added to the national debt by 2033 than was previously expected. 

The report estimates a $1.4 trillion budget gap in 2023 between government spending and tax revenues. 

Over the next decade, the CBO predicts that deficits will average $2 trillion annually, with tax revenues continuing to lag behind the rising costs of entitlement programs, such as Social Security and Medicare.

On top that, the nonpartisan budget group also predicts that the US economy will barely grow in 2023, after taking account of inflation, and that joblessness will increase, with the unemployment rate rising above  5% for the first time since 2021....

....MORE 

Ctrl+F-ing through "The Budget and Economic Outlook: 2023 to 2033" the word "interest comes up 287 times.

The fifth occurrence, the table on page 4, has fiscal year 2033 net interest payments at $1.429 Trillion, eclipsing the projected expenditure for the military of $1.269 and comprising over half of that year's forecast deficit of $2.702 Trillion.

As we've said for years, every dollar of deficit spending is stimulus. And the U.S. economy would collapse without this new money being injected into the system.

That is the very definition of a Ponzi scheme, always hustling the new money to keep the game going just a little bit longer until...

Until what? Until the current batch of politicians can retire and get on with their lobbying businesses? Until the Sweet Meteor of Death strikes and clears the books for this go-round?

There's another huge problem with the effect of deficits, they don't create growth in the economy, they only "pull-forward" any growth that was already going to happen:

Fed; Treasury; Markets: "Pulling Forward Growth No Longer An Option"
One of the concerns about President Obama's 2009 -2010 ARRA and then the "Recovery Summer" of 2010 - beyond the fact that he put Joseph—‘Don’t underestimate Joe’s ability to f*** things up’—Biden in charge, was the economic issue that the $787 billion in stimulus spending would not create any new growth but would only pull growth forward from the out years, minus slippage, grift/graft, marginal productivity of debt and other incidental costs of stimulus programs....

*****

You can't say President Obama didn't try to warn us, I mean "Don’t underestimate Joe’s ability to f*** things up" is pretty straightforward.

And you can't say we didn't try to warn...well...anyone who'd listen.

Here's an example from 2012:

The Real Problem With Stimulus

I've mentioned a few times that Keynes was all about the countercyclical thing.
In the U.S. we have devolved to perma-stimulus, every dollar of deficit spending being stimulus, and have no plans to ever stop. Anyone who argues that stimulus isn't stimulus unless it is labeled stimulus is being sillier than I felt when I typed this sentence.
Deficit spending is stimulus whether you call it ARRA, sweet, sweet Biden love or Democracy's flaw.....

The Biden reference is to the fact the former Vice-President was overseer of the ARRA stimulus in 2009 - 10 and the Recovery Summer in 2010.....

And January 2020 when talk of BIG stimulus started to percolate:
The Diminishing Marginal Productivity of Debt in the U.S.
Also known as "Bang-for-the-buck".
Last year it took $1.41 of stimulus to generate $1.00 of GDP growth....

July 2021
Diminishing Returns: Getting Less And Less For Each Dollar of Deficit Spending Means Disaster Is Locked In

April 2022
Mohamed El-Erian: "The Growth Engines Are Sputtering"
We are in a situation where years worth of economic growth have been pulled forward from future years by deficit spending, call it stimulus, call it sweet, sweet Biden love, whatevs; and the only way to keep the hamster wheel spinning is to keep feeding money into the system..... And many, many more.

Here's  "The Budget and Economic Outlook: 2023 to 2033" (101 page PDF)