{"id":2647665,"date":"2026-08-21T06:47:25","date_gmt":"2026-08-21T10:47:25","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bond-market-meltdown-shows-maga-needs-deficit-reducing-response\/"},"modified":"2026-08-21T06:53:40","modified_gmt":"2026-08-21T10:53:40","slug":"bond-market-meltdown-shows-maga-needs-deficit-reducing-response","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bond-market-meltdown-shows-maga-needs-deficit-reducing-response\/","title":{"rendered":"Bond market meltdown shows MAGA needs deficit-reducing response"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fbond-market-meltdown-shows-maga-needs-deficit-reducing-response%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2647665&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Global markets are experiencing significant volatility, triggered by a spike in U.S. Treasury bond yields reaching levels not seen as 2007, amid concerns over new Middle East conflicts and uncertainties about the Federal Reserve\u2019s interest rate policies. Investor confidence is further shaken by the U.S. facing a rising national debt surpassing $40 trillion,which now accounts for a notable portion of the country&#8217;s economic output and revenue. Elevated borrowing costs have also resulted in higher mortgage rates, impacting consumers. bond investors warn that the growing federal deficit is unsustainable, with projections for a $2.1 trillion deficit in 2026, raising fears of a fiscal crisis. To address this, policymakers may pursue targeted reforms through the congressional reconciliation process, focusing on healthcare cost savings-such as Medicare reforms-and restrictions on immigration-related benefits, which could yield hundreds of billions in savings without raising taxes or substantially cutting social programs. These fiscal measures aim to reduce the deficit and stabilize the bond market amid ongoing economic uncertainties.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<article class=\"fn-body\">\n<p class=\"wp-block-paragraph\">International markets are rattled by global events. That was made clear by the Aug. 18 widespread global selloff of U.S. <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/treasury\/\">Treasury <\/a>securities, raising 30-year yields to roughly 5.34%, the highest level since 2007.<\/p>\n<p class=\"wp-block-paragraph\">There are several causes for the rising investor anxiety. This includes renewed conflict in the <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/middle-east\/\">Middle East<\/a>, along with a continued guessing game about the <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/federal-reserve\/\">Federal Reserve<\/a>\u2019s intentions regarding <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/interest-rates\/\">interest rates<\/a>.<\/p>\n<section class=\"explore-more-section\" id=\"wex-recommended-widget\">\n<div class=\"magazine-container single\">\n<h1 class=\"magazine-title mt-2\">Recommended Stories<\/h1>\n<p>             <i class=\"fa-solid fa-play icon\"><\/i>         <\/div>\n<div class=\"explore-grid\">\n<div class=\"explore-card\">                         <a href=\"https:\/\/www.washingtonexaminer.com\/news\/business\/4695074\/arizona-gop-hearing-paramount-merger\/?itm_source=parsely-api\">                             <\/p>\n<div class=\"explore-thumb-wrap\">                                                                                                                                  <\/div>\n<h3>Arizona GOP leader seeks hearing on taxpayer risk in Paramount merger case<\/h3>\n<p>                         <\/a>                     <\/div>\n<div class=\"explore-card\">                         <a href=\"https:\/\/www.washingtonexaminer.com\/news\/business\/4690169\/paramount-bond-financial-losses-warner-bros-merger\/?itm_source=parsely-api\">                             <\/p>\n<div class=\"explore-thumb-wrap\">                                                                                                                                  <\/div>\n<h3>Paramount seeks $1.88 billion bond to cover financial losses from blocked merger<\/h3>\n<p>                         <\/a>                     <\/div>\n<div class=\"explore-card\">                         <a href=\"https:\/\/www.washingtonexaminer.com\/news\/senate\/4686778\/midwest-senator-investigation-roblox-child-safety-grooming-explicit-content\/?itm_source=parsely-api\">                             <\/p>\n<div class=\"explore-thumb-wrap\">                                                                                                                                  <\/div>\n<h3>Midwest senators open investigation into Roblox allegedly putting profits over child safety<\/h3>\n<p>                         <\/a>                     <\/div>\n<\/p><\/div>\n<\/section>\n<p class=\"wp-block-paragraph\">Primarily, though, America\u2019s bleak fiscal situation is quelling investor confidence. The U.S. Treasury bond selloff coincided with the nonpartisan <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/congressional-budget-office\/\">Congressional Budget Office\u2019s<\/a> release of statistics that the national debt is about to cross the $40 trillion threshold. Put another way, existing <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/national-debt\/\">national debt<\/a> now consumes 3.3% of the entire U.S. economic output and 19% of every dollar Uncle Sam collects.<\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-1\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-1\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-15\" data-wex-ad=\"art-dsk-inart-1\"><\/div>\n<\/div>\n<\/div>\n<div class=\"article-paywall\">\n<p class=\"wp-block-paragraph\">And of course, elevated borrowing costs have trickled down to ticked-off consumers; 30-year fixed mortgage rates remain above 6.7%, 70 basis points higher than they were six months ago.<\/p>\n<h2 id=\"h-an-investor-warning-shot\" class=\"wp-block-heading\">An investor warning shot<\/h2>\n<p class=\"wp-block-paragraph\">Bond investors are correctly sounding the alarm that the federal deficit is no longer tenable. <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/cbo\/\">CBO<\/a> has raised its deficit projection for fiscal 2026 by $200 billion to $2.1 trillion. The impending fiscal crisis is not the $40 trillion national debt itself; rather, it\u2019s that deficit spending is growing so rapidly that buyers no longer have the appetite to allow Americans to finance it at the ultra-low rates we\u2019ve relied on for the past 20 years.<\/p>\n<p class=\"wp-block-paragraph\">Even if the flood of red ink seems an academic exercise to many, higher buyer costs are sure to get voters\u2019 attention a bit over two months out from the Nov. 3 midterm elections. President <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/donald-trump\/\">Donald Trump<\/a>\u2018s <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/trump-administration\/\">administration<\/a> has a chance to limit the damage by making one final stab at a deficit-reducing bill on Capitol Hill. Big-spending congressional Democrats are never going to play ball legislatively. So, this would have to be done through the budget reconciliation process, which allows the Senate to skirt its normal 60-vote threshold to overcome a filibuster and pass legislation with a simple majority of 51 votes in the 100-member chamber.<\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-2\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-2\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-16\" data-wex-ad=\"art-dsk-inart-2\"><\/div>\n<\/div>\n<\/div>\n<p class=\"wp-block-paragraph\">The proposal would have to be large enough in spending cuts to actually move Treasury investors, politically palatable enough to garner the support of the MAGA base and a party-line vote in Congress, and limited enough in scope to pass muster with the Senate Parliamentarian. So, instead of spending energy on the SAVE America Act, rewriting the entire immigration system, or (as I would prefer) taking a hammer to Social Security, all of which are banned from being included in reconciliation packages, Reconciliation 3.0 ought to take a selective approach to reforms. Including targeting spending on noncitizens, Medicare waste, and inefficient visa allocation. Crucially, it cannot raise taxes on citizens and impede the economic growth that we\u2019re relying on to avoid a debt crisis.<\/p>\n<h2 id=\"h-debt-slashing-reconciliation-legislation\" class=\"wp-block-heading\">Debt-slashing reconciliation legislation<\/h2>\n<p class=\"wp-block-paragraph\">Let\u2019s start with the most boring provisions of the bunch: healthcare. The CBO estimates that broad, site-neutral Medicare payment reforms could save $157 billion over the next 10 years. Modernizing Medicare cost-sharing, namely by consolidating the separate deductibles of Parts A and B and restricting Medigap from covering that deductible, would save $200 billion over the next decade. The Committee for a Responsible Federal Budget projects that allowing private Medicare Advantage plans to compete against traditional Medicare options would save another $450 billion, and reducing Medicare Advantage overpayments would save $780 billion.<\/p>\n<p class=\"wp-block-paragraph\">Building on last year\u2019s One Big Beautiful Bill Act and fully banning the use of provider taxes would save $600 billion, and freezing the income thresholds for Medicare premiums would save $290 billion. Include the Lower Health Care Premiums for All Americans Act, a priority of House Speaker Mike Johnson (R-LA) that has already passed the chamber, and we\u2019ve saved another $35.6 billion. Without raising a single tax, these basic healthcare reforms, taken individually, combine to over $2 trillion.<\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-3\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-3\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-17\" data-wex-ad=\"art-dsk-inart-3\"><\/div>\n<\/div>\n<\/div>\n<p class=\"wp-block-paragraph\">Reconciliation\u00a0may very narrowly allow Congress to reorganize visa allocation at the margins. But because not all immigrants contribute equally to the country, even minimal changes could yield significant savings. Over a ten-year window, these efforts would save about $10 billion.<\/p>\n<p class=\"wp-block-paragraph\">While the Senate Parliamentarian would be unlikely to allow a reconciliation bill to outright ban the allocation of green cards to the older parents of adult citizens, the Manhattan Institute\u00a0has recommended imposing a fee of $260,000 to bring a parent to the country, equivalent to the net fiscal cost those older parents usually incur\u00a0to the federal deficit. The estimated net savings would be $100 billion to $200 billion over a decade.<\/p>\n<p class=\"wp-block-paragraph\"><strong><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/policy\/4670439\/how-homeowners-lower-electricity-bills\/\">HERE\u2019S HOW HOMEOWNERS CAN LOWER THEIR ELECTRICITY BILLS<\/a><\/strong><\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-4\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-4\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-25\" data-wex-ad=\"art-dsk-inart-4\"><\/div>\n<\/div>\n<\/div>\n<p class=\"wp-block-paragraph\">The Republican Study Committee has continued to tout two major cost-savers in its ongoing menu of reconciliation options: banning noncitizens from Medicaid, SNAP, housing assistance, and other federal benefits, which they estimate would save $231 billion. And requiring federal agencies to only consider citizens when <a href=\"https:\/\/amzn.to\/3YuVZYV\" >allocating population-based funding streams<\/a> for cities and urban centers, which they somewhat optimistically project would save $629 billion. Let\u2019s round down to account for overlap and say that together these provisions would save closer to $700 or $800 billion.<\/p>\n<p class=\"wp-block-paragraph\">All in all, this incredibly rudimentary framework would net trillions in savings without raising a single tax, touching Social Security, or meaningfully slashing benefits for working-class citizens. I\u2019m willing to wager that short of blowing the Strait of Hormuz open and the ayatollah up tomorrow, only a deficit reduction this large will meaningfully save the bond market.<\/p>\n<p class=\"wp-block-paragraph\"><em>Tiana Lowe Doescher (<a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/x.com\/TianaTheFirst\">@TianaTheFirst<\/a>) is an economics columnist for the <\/em>Washington Examiner<em>.<\/em><\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-5\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-5\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-26\" data-wex-ad=\"art-dsk-inart-5\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Global events shake markets; U.S. Treasury yields hit 2007 highs<\/p>\n","protected":false},"author":2693,"featured_media":2647666,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2026\/08\/WB.Biz_.Tiana_.082626.jpg?w=696","fifu_image_alt":"","footnotes":""},"categories":[33651],"tags":[84405,56189,38510,5656],"class_list":["post-2647665","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-western-journal","tag-bond-market","tag-deficit-reduction","tag-fiscal-policy","tag-maga"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2026\/08\/WB.Biz_.Tiana_.082626.jpg?w=696","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2647665","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2693"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2647665"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2647665\/revisions"}],"predecessor-version":[{"id":2647669,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2647665\/revisions\/2647669"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2647666"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2647665"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2647665"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2647665"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}