Rising Interest Rates: Is There a Risk of a Debt Crisis? - GoldBroker.com

Rising Interest Rates: Is There a Risk of a Debt Crisis? - GoldBroker.com

Source: GoldBroker.com

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DW NOTE

The Federal Reserve raised rates into a supply shock while US debt service costs are already accelerating — the 10-year at 5.18% means every rollover compounds the deficit arithmetically. Governments that borrowed at 1% now refinance at five times the cost, and central banks are no longer buying but selling. This isn't theory; Japan spent ¥6.2 trillion last quarter defending a cap far lower than where Treasuries trade now.

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