I'm a big fan of the economist Martin Armstrong. The man's a genius. So, when he says that Uncle Sam is pouring billions of dollars into foreign hands because of interest payments on the US Debt, I get worried. It makes sense that if that money is leaving the country as interest payments, it's impoverishing our economy.
But, when I go to the Bureau of Economic Analysis website, and look at the figures, I see this.
The top two lines are government spending and receipts. The bottom two lines are total interest payments and interest payments to foreigners. What am I missing? Those interest payments don't look like that big of a problem.
And he shows this graph (I wish I could get a high-res of this).
That looks much scarier. But if interest is such a huge percentage of the debt, why are the yearly payments so low?