The Kobeissi Letter|Oct 17, 2026 14:33
BREAKING: Interest expense on US public debt rose +$144 billion YoY in FY2026, or +12%, to a record $1.36 trillion.
This marks the 6th consecutive annual increase, for a total of +$839 billion, or +161%.
For perspective, total receipts rose just +3.2% YoY, to $5.40 trillion.
In other words, interest on federal debt accounted for 25% of total US government receipts.
Meanwhile, Social Security, the largest government expense, jumped +$86 billion YoY, or +5.5%, to a record $1.67 trillion.
At this pace, interest costs will exceed Social Security as the largest government outlay by the end of 2028.
What is the long-term plan here?
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