Thread

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

122 points · 193 comments · kaycebasques

missedthecue · 1790820728 · focus · HN ↗
In 2026, entitlement spending + interest expense will be over 100% of federal tax revenue.
That's before the military, foreign aid, and everything that starts with "Department of"
1. toomuchtodo · 1790820989 · focus · HN ↗
  Yeah, cut the $1T/year in defense spending and raise taxes to pay down the debt (to cut $1T/year in interest expenses) and balance the budget. Entitlements remain because workers are entitled to those benefits they worked for. The same workers the wealthiest need to suck $5T+ a year of profit out of the economy.
  We used to have 94% top tax bracket rate at one point, and higher tax rates in general. We’ll find the will to raise taxes as soon as the bond market compels the spineless in Congress to find the will (as the cost of debt continues to rise into the future), because you cannot deceive the bond market.
  <a href="https://taxfoundation.org/data/all/federal/historical-income-tax-rates-brackets/" rel="nofollow">https://taxfoundation.org/data/all/federal/historical-income...
  <a href="https://www.axios.com/2026/09/27/rates-borrowing-yields-fiscal" rel="nofollow">https://www.axios.com/2026/09/27/rates-borrowing-yields-fisc...
  - In projections that the Congressional Budget Office produced last February, net interest costs are already at $1 trillion this year and on track to reach $2 trillion by 2035, meaning that much of federal spending is needed just to service old bills.
  - But those projections assumed 10-year Treasury yields were in the ballpark of 4.3%. They're now nearly a full percentage point higher than that.
  - In startling numbers that CBO released this week, in a scenario in which interest rates were 1 percentage point higher than its baseline, debt held by the public would grow to 222% of GDP in 2056, 47 percentage points higher than the baseline.
  <a href="https://www.cbo.gov/publication/62758" rel="nofollow">https://www.cbo.gov/publication/62758
  1. joegibbs · 1790823687 · focus · HN ↗
    There's this perception that the majority of US government spending is on the military which is completely untrue.
    Defence is only 12% of the US federal budget - what are you going to cut it to? It's not going to solve the issue even if it's abolished. Over the last 10 years health, Medicare and Social Security have grown 103%, 83% and 78% respectively for an increase of $1.64 trillion to $3.55t vs a $916b on defence. With an aging population it's only going to cost more and more over time, you can't continue to put higher taxes on a shrinking share of productive population to care for more and more unproductive retirees under any economic system.
    digitaltrees · 1790825960 · focus · HN ↗
    Single payer Healthcare would flatten that curve by removing the incentive that insurance companies and health providers have to raise prices in coordination. Insurance is only allowed a certain percentage of admin costs (salaries etc) and profit from premiums so their incentive is to raise premiums but they can only do that by showing increased costs. Health providers have an incentive to show their costs aren't fully paid by insurance so they can also justify inflation of expenses.
    burnt-resistor · 1790828360 · focus · HN ↗
    Universal SPH would save a net $300B to $1T, reduce paperwork, reduce deaths/improve outcomes, and provide better care. The FUD canards of "rationing", "waiting lists", and "communism" as well as classism and corrupt profiteering are the barriers to less suffering. Just give everyone the same coverage that doesn't have a 20% hole or lifetime limits... and that eliminates Medicare, Medicaid, Tricare, CHIP, ACA, and most private insurance, and most billing coding and prior-auth nonsense. Not doing so wastes money and kills people, just like parts of the BBB coming into effect after the midterms is going to bankrupt and kill thousands of people.
    digitaltrees · 1790833011 · focus · HN ↗
    I agree. I own home health care agencies in 14 states. The admin we have to fund is absolutely ridiculous and wasteful. But republicans use clerical errors to scream about waste fraud and abuse because that justifies cutting spending and so the system operates inefficiently and costs keep rising on the public and private side.
    burnt-resistor · 1791016798 · focus · HN ↗
    Nothing will change in a lasting manner without first leadership addressing political and campaign corruption. Then and only then can SPH and nationalization/re-regulation/nonprofitization happen. For-profit healthcare should be allowed on the periphery but only under a carefully proscribed and uniformly-regulated manner rather than the predatory manner (i.e., private equity) allowed now. Nearly all healthcare should be nonprofit, government, and/or small businesses vaguely similar to the UK NHS or how it worked 50 years ago.

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