Governments promise tax cuts, investment and economic growth. But the investors financing those promises can force leaders to change course, abandon policies and even leave office. As an oil shock drives inflation and borrowing costs higher, Kathleen Brooks, Research Director at XTB, and Carsten Brzeski, Global Head of Macro at ING, explain who really controls the bond market, why America’s vast debt is becoming harder to ignore and what happens when governments lose the confidence of their lenders. #DWbusiness #DWdip
Chapters:
0:00 The markets that can break governments
0:37 How much power does the bond market have?
3:37 Why government borrowing costs are rising
6:14 Why some countries are more vulnerable
7:38 Who lends money to governments?
8:52 How the oil shock drives up debt costs
11:25 Could Europe face an energy debt shock?
13:13 America’s rapidly rising interest bill
16:08 Could China use US debt as a weapon?
17:05 Why America is losing its borrowing advantage
18:33 What Trump could do to ease the pressure
19:46 Can central banks protect governments?
21:27 What happens when countries cannot stop spending?
23:43 Can bond markets override democracy?
26:13 A new era of higher inflation
26:43 The government debt doom loop
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