USA Bond Crisis - Joe Blogs
Rising bond yields, surging debt interest costs, and a growing unease among major creditors are putting the U.S. governments finances under increasing strain.
The United States is facing a growing debt problem
and the bond market may now be the biggest risk to the entire economy.
In this video, I take a detailed look at the US bond crisis, why Treasury yields have surged to around 4.4%, and why this matters so much when America now has almost $39 TRILLION of national debt.
Well look at:
Why rising bond yields are causing huge problems for the US government
How much debt America now has
Why refinancing old low-interest debt at todays much higher rates is massively increasing costs
How interest payments are approaching $1 trillion per year
Why foreign buyers such as China are reducing exposure to US Treasuries
The risks of a debt spiral and worsening federal deficits
Why the bond market now matters more than ever for the global economy
For years, the US benefited from ultra-low borrowing costs. But now yields have doubled and, in some cases, tripled compared with the period between 2017 and 2021. And with trillions of dollars of debt constantly maturing and being refinanced, the financial pressure is building rapidly.
This is not just an American issue. Rising US Treasury yields affect global markets, mortgages, stock prices, currencies, inflation and the wider world economy.
So is this the beginning of a genuine US bond crisis?
Watch the full video to find out.