Bond markets around the world are flashing red warning signs that should alarm every American family. Government debt is spinning out of control, and now investors are demanding much higher interest rates to lend money to broke nations. This is what happens when politicians spend like drunken sailors with no regard for future generations.
U.S. Treasury bonds are now paying almost 5 percent interest, the highest in years. British bonds have shot up to over 5.7 percent, while French government debt is also spiking toward dangerous levels. When bond yields rise this fast, it means investors are getting scared about whether governments can actually pay back what they owe.
The numbers tell a frightening story of fiscal recklessness. America’s debt-to-GDP ratio keeps climbing because our government borrows far more than our economy can support. We are not growing fast enough to keep up with the massive spending spree that has been going on for years under both parties.
Gold prices have rocketed to a record high of over $3,500 per ounce as smart money flees to safety. When investors dump government bonds and rush into gold, that is a clear sign they have lost faith in paper money. This should be a wake-up call for every politician in Washington who thinks spending has no consequences.
The bond selloff is not just an American problem but a global crisis of confidence in government finances. Countries like France and Britain are also seeing their borrowing costs skyrocket as markets revolt against endless deficit spending. This proves that no nation is immune to the laws of economics, no matter how powerful they think they are.
Higher bond yields mean higher mortgage rates, credit card rates, and business loan costs for regular Americans. When the government crowds out private borrowers by sucking up all the available credit, working families pay the price. This is exactly why fiscal conservatives have been warning about reckless spending for decades.
The Federal Reserve may try to rescue politicians by cutting interest rates, but that would only make inflation worse. We cannot print our way out of a debt crisis that was created by printing too much money in the first place. The only real solution is to cut spending dramatically and get our fiscal house in order.
Americans need leaders who will stand up to the spending lobby and make the hard choices necessary to restore fiscal sanity. We must elect conservatives who understand that every dollar the government wastes is a dollar stolen from hardworking taxpayers and their children. The bond market is sending us a message we ignore at our own peril.
