Shocking stat of the day: Estimated annualized interest expense on US federal debt is up to a record $1.38 trillion. This is equivalent to 4.2% of US GDP, the highest percentage since 1997. By comparison, this figure stood at 2.3% in Q4 2020. Annualized interest expense has surged +$900 billion, or nearly +200%, over the last 5 years, rising at an average annual rate of +24%. Meanwhile, in the first 9 months of FY2026, interest expense jumped +$78 billion YoY, to $827 billion, the highest level for this period in history. The cost of servicing US federal debt has never been higher.(The Kobeissi Letter)