US borrowing costs are at their highest in more than two decades, which is bad news for taxpayers, the dollar, and anyone holding cash.

• The government owes over $40 trillion while collecting about $5 trillion a year in taxes — a debt load compared to someone earning $100,000 and owing $800,000 on credit cards.
• Lenders are demanding higher rates because there simply aren't enough buyers left for new government debt at the old rates.
• Interest alone will cost $1.1 trillion this fiscal year, meaning 22 cents of every tax dollar goes to interest and pays off none of the debt.
• Debt compared to the size of the economy is now 127%, versus 32% in 1982, so comparisons to past high-rate eras don't hold.
• The feared path: higher rates force bigger deficits, which force money printing, which turns inflation into something far worse.

Outlook: Without a balanced budget, rates and interest costs keep climbing, pushing the country toward a sovereign debt crisis that would hit the middle class hardest.