Making Money Minute with Ron Hiebert
Interest Rates Send A Message
The United States and Japan are two countries, whose debt is spiralling out of control. To continue, they must find more and more buyers for all the bonds they need to issue to fund this wild party. But potential purchasers are starting to balk - worried about being paid back. By closing their wallets, the US and Japan are having to jack up longer term bond yields to levels we haven’t seen for decades, just to attract them. Investors are sending a clear message on debt levels, tax cuts and the broader need for fiscal responsibility. Hopefully, the politicians are listening.
