Rising bond yields a blinking red light about the need to curb federal spending

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Rising bond yields a blinking red light about the need to curb federal spending
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Tiana Lowe Doescher is a commentary writer for the Washington Examiner, as well as an on-air contributor for The First on Pluto TV. She previously interned for National Review and founded the USC Economics Review. She graduated from the University of Southern California with a B.S. in economics and mathematics.

Rep. Matt Gaetz and Co. couldn't have picked a worse time to sink the nine-month House speakership of Rep. Kevin McCarthy .

Gaetz contends rising red ink threatens the nation's fiscal future. And he's not wrong. But making McCarthy a scapegoat for runaway Washington spending does nothing to solve a problem that, if left unchecked, will force future generations to pay more just to make America's interest payments on the national debt.

Bond yields, which move inverse to their prices, are not high, historically speaking. A 5,000-year analysis of historical interest rates by Bank of America proved that Jesus was furnishing homes purchased with mortgage rates on par with our 8% rates; it was the zero-interest rate policy of 2008 through 2021 that was historically anomalous.

Although the Congressional Budget Office projects that net payments on interest will outpace our total defense spending by 2030, the CBO doesn’t account for rising interest rates. Hence, the Manhattan Institute warns us that interest payments will cost a full half of all incoming tax revenue by 2051 if interest rates remain at their current historical average.

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