The bond market is telling us the free lunch is over - For most of this century, rich countries have enjoyed a seemingly free lunch: They could spend money as needed, cut taxes at will and stimulate their way out of problems without paying a price in the form of higher borrowing costs or inflation.

The big picture: That era is over. The $145 trillion global bond market is flashing red signals that there's now a price to be paid for governments that indulge their profligate impulses.

It reflects a world where supply disruptions are colliding with massive government borrowing needs and the funds required for the AI buildout.
The result: Higher inflation and surging demand for capital add up to higher and more volatile interest rates. https://www.axios.com/2026/05/26/inflation-debt-oil-bonds #bonds #economy #NationalDebt #RepublicansDidThis #RepublicansOwnThis