| Ripple Effect — January 12, 2026
What do you get when you roll over a five-year bond from 2021 to 2026? You get far higher interest rates.  Payments on government debt continue to soar amid high debt levels and relatively high interest rates (Source: econovis.net) Total municipal, state and federal debt service costs soared to nearly $1.5 trillion in the third quarter of 2025. Debt’s easy to accumulate when rates are low. Trouble is, you are obligated to refinance them even after rates go up.
It’s also a key reason why the Trump administration is demanding lower interest rates – even if it means reigniting inflation.
As long as rates are trending lower, like they did from 1980 to 2020, government debt appears manageable. If, as our own Andrew Packer has suggested, we’re at the start of a 40-year secular cycle of rising interest rates, government debt across the Western world, debt itself will force voters to rethink what they ask their government to do. (See: Grey Swan 2026 Forecast #7)
~ Addison | Under the surface of the U.S. financial system…
One of the biggest stock market events in 25 years is rapidly unfolding…
The economist who predicted the 2008 Financial Crisis says it will be: "The Biggest Crash of Our Lifetime."
Starting February 25th — your favorite tech stocks like Nvidia, Apple, Microsoft, Google, and hundreds more could come crashing down… 
| P.S. Last week, we wrapped our first Grey Swan Live! of the year, with Matt Smith, publisher at Casey Research. Matt and co-author Doug Casey have just released a new book titledThe Preparation: How to Become Competent, Confident and Dangerous.
Our conversation with Matt was fantastic – on a different plane than our usual Live! themes and a great way to kick off the new year. It’ll be well worth your time to listen to the replay, which is posted to the Grey Swan Live archive in the members' section.
We’re also recommending members buy a copy of The Preparation for a young man in their lives. And we’ll have updates on this week’s Grey Swan Live! soon. Stay tuned.  If you have requests for new guests you’d like to see join us for Grey Swan Live!, or have any questions for our guests, send them here.
How did we get here? Find out in these riveting reads: Demise of the Dollar, Financial Reckoning Day, and Empire of Debt — all three books are now available in their third post-pandemic editions. You might enjoy one or all three. 
(Or… simply pre-order Empire of Debt: We Came, We Saw, We Borrowed, now available at Amazon and Barnes & Noble or if you prefer one of these sites: Bookshop.org, Books-A-Million or Target.)
Please send your comments, reactions, opprobrium, vitriol and praise to: feedback@greyswanfraternity.com |
Post a Comment
Post a Comment