At least one Wall Street bank “investment strategist,” a fellow named Kevin Hartnett of Bank of America, is warning investors against U.S. Treasuries because of the increasing stress on Treasury Secretary Scott Bessent in trying to finance the $40 trillion Federal debt, according to yahoo!finance, which usually picks up such items from Bloomberg News.
The item tells on the Trump Administration showing that, despite its claims to the contrary, “a fiscal picture that has been deteriorating through 2026.“
July’s Federal budget deficit was a huge $432.3 billion, 22% higher than July of 2025.
Net interest on the national debt—and this means after subtracting the interest the government receives on the Treasuries held in its Social Security, Medicare and other Trust Funds—was $104 billion in July alone and $931 billion for the first 10 months of Fiscal 2026.
This total already exceeds the net interest for FY2025 as a whole, and projects to more than $1.1 trillion net interest for this fiscal year.
