Leading economies’ borrowing costs hit highest since 2008 crisis

The Guardian: Government borrowing costs in several advanced economies hit their highest level since the 2008 financial crisis, or even earlier, on Monday as investors feared the Middle East crisis would keep inflation persistently high.

Concerns over rising prices and government spending pushed up the cost of debt issued by Paris, Berlin, Washington DC, Tokyo and London as investors fretted that rising prices would push up interest rates.

My Opinion: Governments have kept borrowing and spending more, since the pandemic. The US is not implementing counter cyclical fiscal policy. As even though the economy is expected to grow by about 2%, the forecast fiscal deficit is about 7%. I don't think that the rising borrowing costs is going to deter the government from continuing to borrow. Even as they plan to raise defense spending by about 50%. If the president keeps threatening other countries, and keeps going to war, they are going to need the money.

So the government debt is going to keep rising, inflation will remain elevated, and the country will keep making war with foreign nations and immigrants. So the president has failed to keep at least two of his promises: to control inflation, and to avoid foreign entanglements.