The Endgame Has Begun

The price of keeping the endgame going

Everyone knows the story. Governments have too much debt, deficits are too large and none of it can continue forever. What is new, or at least increasingly difficult to ignore, is the price of keeping the game going.

The debt accumulated during the cheap-money era is steadily being refinanced at much higher rates. Interest expense is exploding, deficits remain enormous and the bond market is beginning to demand a higher price for absorbing it all.