Carlyle Group co-founder and billionaire investor David Rubenstein warned that the United States' expanding debt is like a ticking time bomb and said it is weakening national security. According to Sina Finance, he said the U.S. now carries $40 trillion in debt and that annual interest costs have already exceeded defense spending.
Rubenstein made the remarks in a recent podcast episode. He said annual interest expense is now slightly above $1 trillion, while the defense budget is also about $1 trillion.
According to Sina Finance, DoubleLine's latest analysis showed that annual U.S. debt interest payments have risen to a record 18.5% of federal revenue, breaking the previous 18.4% high set in 1991. The report also said annual interest expense has reached a record $1.25 trillion, more than four times the 1991 level.
Rubenstein said the result is higher interest rates, which would raise the cost of mortgages, ordinary borrowing, and credit card use.