Wall Street says inflation is beaten. The people who actually buy the groceries disagree. The New York Fed's survey just put consumers' 3-year inflation expectations above 3.3%, the highest since 2022 and hotter than any point in the 9 years before prices exploded in 2021.… pic.twitter.com/egrClKOJ8e
— Kurt S. Altrichter, CRPS® (@kurtsaltrichter) August 10, 2026
The Fed just fractured, and the bond market noticed.
3 policymakers broke ranks to demand a rate hike, only the 6th such revolt in 30 years, while chair Kevin Warsh held rates and refused to explain why. Bonds read it as a dovish cave. The 30-year yield jumped to its highest… pic.twitter.com/igxwtySuTp
— Kurt S. Altrichter, CRPS® (@kurtsaltrichter) August 10, 2026
THE US IS NOW BORROWING MONEY JUST TO PAY INTEREST ON MONEY IT ALREADY BORROWED
Interest alone costs $2.85 billion a day, or $1.039 trillion in 2026.
That is 14% of the entire federal budget and more than the US spends on defense.
The national debt just crossed $40 trillion, the highest ever.
And it is getting worse.
The government repays old debt by issuing new debt.
All of it is now being refinanced at far higher rates than it was originally borrowed at.
The 30-year Treasury yield hit 5.27% last month, its highest since 2007.
Every dollar rolled over costs more than the dollar it replaces. Interest is already equal to more than half the 2026 deficit.
That is the loop. Interest eats more than half the deficit, the deficit is funded by borrowing, and each round of borrowing costs more than the last.
This does not stay in Washington.
Treasury yields set the price of mortgages, car loans and business borrowing across the country.
THE US IS NOW BORROWING MONEY JUST TO PAY INTEREST ON MONEY IT ALREADY BORROWED
Interest alone costs $2.85 billion a day, or $1.039 trillion in 2026.
That is 14% of the entire federal budget and more than the US spends on defense.
The national debt just crossed $40 trillion,… pic.twitter.com/lHwfVRDQUd
— Bull Theory (@BullTheoryio) August 10, 2026