🇺🇸🏦 As global debt worries mount, is another crisis brewing? US interest payments on debt rising fast w/US debt-to-GDP at 122%.

“As interest costs go up in the US, you get in this vicious circle, where higher interest rates cause higher funding costs, cause higher debt issuance, which cause further bond liquidation, which cause higher rates, which put us in an untenable fiscal position," Hedge Fund Manager Paul Tudor Jones told CNBC.

📎 Holger Zschaepitz

🇮🇱🇵🇸 Discovered camouflaged MLRS of Hamas in the Gaza Strip.

🇺🇸🏦 Many do not understand the implications of US debt service costs rising.

For nearly 20 years, it was effectively free for the US to issue debt as debt service costs were ~1.5%.

Now, debt service costs have doubled to 3% and will rise toward 5% as rates skyrocket.

To put this in perspective, 5% on $33 trillion is ~$1.7 trillion PER YEAR on interest expense.

As deficit spending rises, rates are also rising as the US issues trillions in bonds to cover the deficit.

It's a never ending cycle of borrowing to spend which is driving rates higher and leading to interest expense being 20% of US revenue.

There is no long-term plan.

📎 The Kobeissi Letter

🇺🇸🏦 12-month trailing total of federal receipts is down to $4.176T as of August, down from $4.931T for the 12 months ending Nov. 2022. But don't you dare say we are in a recession. These data lag the SP500 by ~12 months, so it should start turning up soon.

📎 Tom McClellan

🇺🇸🏦 Levered hedge funds have been one of biggest marginal buyers of USTs in recent months as part of the relative value basis trade.

Last month, "a senior exec at one of the world's largest HF's" told FT "If hedge funds stopped buying USTs, I don't know who would buy them."

📎 Luke Gromen

🇺🇸🏦 Foreign share of UST T-Bill holdings (green line in top chart) from 50% in 2015 to 23% now.

Foreign share of UST note & bond holdings (green line in bottom chart) from 63% in 2009 to 33% now.

📎 Luke Gromen

🇺🇸📝 In 1985, the defecit in the USSR was 2% of GDP. By 1990, it had climbed to 10%, but Soviet bonds were still rated as strongly as Canadian or Italian bonds. In 1991, despite super majorities in nine of the 15 Republics voting to keep the USSR together under the auspices of the New Union Treaty, the defecit increased to 30% of GDP and the Union collapsed under the weight of mass inflation.

For those wondering where the United States currently is, it’s at about 8% of GDP and that’s without the widely expected Recession hitting yet.

🇵🇸🇮🇱 Dead Israeli cargo

🇮🇱🇵🇸Evening arrivals in the Gaza Strip

🇱🇧🇺🇲🇮🇱 The Lebanese paramilitary group Hezbollah, in response to the deployment of warships of the US and Israeli navies in the Eastern Mediterranean, showed its Noor anti-ship missiles.

🇮🇱🇵🇸 Fresh footage of the work of the Israeli Armed Forces in the Gaza Strip.

🇷🇺🇺🇦 Former soldiers of the Armed Forces of Ukraine take the oath to Russia and will now serve in the Russian Armed Forces.