The Crushing Weight of US Debt: Navigating Long Term Investing in a Rising Interest Rate Environment The United States national debt has become a pressing concern for long term investors, posing significant challenges to investment returns and financial stability.
As of writing, the federal budget deficit is roughly $1 trillion annually, with total outstanding debt exceeding $23 trillion – a staggering increase from just over $5 trillion in 2008.
Every dollar added to the national debt requires an additional dollar of interest payments each year, creating a self perpetuating cycle that can significantly impact long term investment outcomes.