IMF warns US and France over short term debt risks
Business
The IMF is warning countries like the US and France about leaning too much on short-term debt to cover their bills.
It sounds convenient now, but if inflation keeps rising and interest rates go up, refinancing all that quick-expiring debt could get a lot pricier, and fast.
The US especially might feel the pinch if global tensions push rates even higher.
US interest could match Social Security
The IMF says the US could end up spending as much on interest by 2031 as it does on Social Security, about 5.7% of its entire economy.
That's a huge chunk of cash just to pay off old borrowing.
The takeaway? Governments need to cut down their deficits soon, or risk getting stuck in an endless cycle of expensive debt.