Economist Podcasts Invaluable bonds: rising borrowing costs
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Oct 17, 2023 
Henry Tricks, Economics editor for The Economist, and James Miles, the publication's China writer at large, dive into pressing fiscal concerns. They discuss the impact of rising borrowing costs on government budgets, exploring potential spending cuts and tax increases. On a lighter note, they examine how the Chinese Communist Party engages youth through modern cultural strategies, including rap. Meanwhile, the animated series 'Bluey' captivates families worldwide with its humorous insights into parenting dynamics.
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Rising Debt Costs
- America's budget issues are worsening due to rising debt costs.
- This problem affects other countries too, causing financial strain.
Causes of High Borrowing Costs
- Central bank interest rate hikes and investor unease are driving up borrowing costs.
- This impacts the US and spills over globally, worrying European governments.
Historical Context of Bond Yields
- Current bond yields are not historically unusual, reaching similar levels in 2007.
- However, higher government debt compared to 2007 magnifies the impact of rising interest rates.