Published Aug 20, 2026, 12:21 PM ET · Updated 3 months ago · 1 source

US bond market faces crisis due to high spending and inflation

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Original Report

The US is experiencing a bond crisis driven by high federal spending on debt servicing (14% of current spending, 3.3% of GDP) and persistent inflation, which is diminishing the nation's ability to maintain its global superpower status as its reserve currency status weakens and sanctions become less effective, making a return to lower interest rates improbable.