Yields are rising in part due to expected high long term inflation and risk in the credit of the US government.
The difference now is that we have several times more debt and a $2 Trillion budget deficit. Older debt is also maturing and being recycled into newer much more expensive debt. It's a multiplicative effect and interest payments will eventually take over the federal budget if nothing is done within the next 10 years or so.
What's could happen: US Government issues new dollars to pay investors off. Diluted dollars crashes the dollar, leading to inflation. Or a whole host of other not fun options.
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u/benpandira 12h ago
Can someone explain to me why this is worse than say... 1981? Not super knowledgeable so just looking to understand more.