The growing size of the U.S. government debt limit, which has now surpassed the critical $31.5 trillion mark, could lead to a total collapse of the nation’s federal budget in the foreseeable future. This would be due to increased government spending to pay interest on the debt, labor and government law specialist Adam Mill is quoted by local publication American Greatness as saying.

“The U.S. national debt now exceeds $31.5 trillion <….> When Joe Biden took office, the average interest rate on that debt was about 1.61 percent and annual interest payments were only $549 billion. Since then, higher spending and higher interest rates have accelerated the problem at a dizzying rate,” Mill lamented.

Recall that in the world now there is a difficult situation, because of which the entire stock market, and the US100 in particular.

The U.S. government debt chart – what’s going on?

The big question, he said, is how long the federal budget will be big enough to offset the nation’s already record high national debt. Already soon, annual interest payments could exceed $1 trillion and rates could be at market levels.

“The government will soon have to finance most of its $31.5 trillion debt at market rates in the neighborhood of 4-5% <….> As early as next year, interest will eat up about a fifth or even a quarter of all government revenue. The only question is how long Washington will delay its imminent end before it has to pay the bill. The payback time is closer than ever,” Mill warned.

On February 8 Bank of America CEO Brian Moynihan urged Americans to prepare for a default on U.S. government debt. In turn, this could lead to negative consequences for the global economy.

Earlier, we reported that Wall Street is falling as Treasury bond yields rise.