Thread

10-year Treasury yield climbs above 5.3% to a level not seen in 24 years

122 points · 193 comments · kaycebasques

petcat · 1790821195 · focus · HN ↗
You want to see what's really bad, a train wreck in slow motion, just look at what France is doing.
They've been subject to EU Excessive Deficit Procedures for multiple years, must bring deficit-to-GDP ratio from ~5.8% down to 3% within 3 years despite virtually no GDP growth and complete political and societal paralysis about reducing any public benefit or welfare whatsoever.
ECB will most likely get involved after 2029 to start austerity measures. You can predict how that will go over with the French public especially if Le Pen takes the presidency, which looks likely.
Very tough times ahead and the EU is facing a critical point about its future.
1. Balinares · 1790838470 · focus · HN ↗
  The Macron government went out of its way to cut taxes for the wealthiest percentiles. Debt exploded, costs were cut, infrastructure went unmaintained (which only ended up adding to structural costs), but the GDP growth remained anemic.
  However the wealth of the wealthiest increased substantially, so there's that, I guess.

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