America spent more than $880 billion just on interest on its debt last year

 Chartr-   On Friday, Moody’s downgraded the US credit rating from its highest AAA grade to Aa1, citing “large annual fiscal deficits and growing interest costs.” The move follows earlier cuts from S&P in 2011 and Fitch in 2023, driven by rising debt concerns and political gridlock.

Now, for the first time since 1917, the US no longer holds top-tier ratings from any of the major agencies — trailing the 11 countries that still boast the highest grading from all three, including Australia, Denmark, Germany, and Canada.

According to the Congressional Budget Office, the US public debt stood at 98% of GDP last year, and is set to surpass the WWII peak by 2029, hitting 119% by 2035. What might be of particular concern to the number crunchers at Moody’s is not just the current level of federal debt, but how quickly it’s growing. Last year, the deficit was $1.8 trillion, more than 6% of GDP. The interest payments on debt alone were some $882 billion, greater than the defense and Medicare budget.