As you slept last night, yields on U.S. Treasury 10-year bond notes hit their highest level (2.885 percent) since January 2014. Coming on the heels of Friday's 666-point plunge in the Dow Jones Industrial Average, this spike in the cost of federal borrowing has the financial markets all herky-jerky today. "Economists and money managers fear that the increase to the $20 trillion U.S. national debt could carry major blowback to markets," Yahoo Finance reported. And for good reason: In a bit of news last week that escaped political attention but hit Wall Street like a sack of wet rats, "The U.S. Treasury expects to borrow $955 billion this fiscal year, according to a documents released Wednesday. It's the highest amount of borrowing in six years, and a big jump from the $519 billion the federal government borrowed last year."
So on today's Reason Podcast, which features Nick Gillespie, Katherine Mangu-Ward, Peter Suderman, and Matt Welch discussing news of the week, we start speculating on how to begin the long political road back to a fiscal sanity both major political parties have recklessly abandoned. What, Gillespie asked, will be the symbolic equivalent for debt realists of feminists burning their bras?
Audio production by Ian Keyser.
Relevant links from the show:
"What About the Debt? Trump's SOTU Ignores a $20 Trillion Time Bomb," by Eric Boehm
"Why Libertarians Should Want More Trust in Government," by Nick Gillespie and Todd Krainin
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