Isn’t the reason the rate of return on government treasuries is going up is because people (other countries that normally buy our treasuries) are beginning to doubt our country’s ability to guarantee repayment on that debt? Well not doubting our ability to repay, but are being antagonized by our current country’s financial actions against other countries?
If other countries decide to look elsewhere, it would make it more expensive for our country to cover that deficit with the treasury bonds that are issued to cover that deficit? It would mean a greater portion of the income our government receives from personal income taxes and tariffs goes to paying the interest on that debt, i.e. repay the holders of those treasury bonds? Since currently interest payments to service our national debt is the 4th largest expense item in our budget just a little less than the amount of money we spend on the department of war.
