The Great ARM Reset: Why the Sovereign Debt Trap Is 2008 in Disguise - Financial Sense
The Great ARM Reset: Why the Sovereign Debt Trap Is 2008 in Disguise - Financial Sense
Source: Financial Sense
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DW NOTE
The US deficit hit $1.9 trillion in fiscal 2026 while the 10-year yield climbed to 5.21% — up 29% year-over-year. That's not a policy dilemma, that's arithmetic: when you borrow two trillion annually, eventually someone asks to be paid for the risk. The term "debt trap" assumes there was ever a way out that didn't involve either default or inflation.