The issuance of short-term zero-coupon bonds in the United States is approaching historical highs, proving that the U.S. debt crisis is worsening.

On December 9, according to The Kobeissi Letter, over the past 12 months, the U.S. Treasury has issued a record $25.4 trillion in T-Bills (Note: T-Bills are short-term zero-coupon bonds issued by the U.S. Treasury with maturities of one year or less), bringing the Treasury’s total issuance to a record $36.6 trillion. This means that T-Bills currently account for 69.4% of total U.S. Treasury issuance, approaching historical highs. As a result, the U.S. government is increasingly using short-term debt that matures in a few months to finance its long-term obligations. Therefore, interest expenses on public debt now move almost in sync with the Federal Reserve’s policy rate. If inflation surges again and the Fed is forced to raise rates further, interest costs will climb to unprecedented levels. The U.S. debt crisis is intensifying.