politics

This is the 2nd time in history that the 20Y bond auction ended with 5%+ yields. Debt crises is coming sooner than you think.

The government pays interest based on the bond market. All the calculations for our deficit and debt are based on 3.5% rates, not 5%+. 

At 5%, the governments debt is insanely expensive to service, nearly rising to 30% of the annual budget. Thats hard to get under control, because again, no one wants to buy bonds from a country that can’t balance a budget.

Based on what?   Can you run through how you see this happening now?