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Oct 13, 2025  |  
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 | Remer,MN
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NextImg:The case against holding bonds
Special report | The end game

The case against holding bonds

Governments are going bust. Inflation risk looms over long-term debt

|6 min read

In a speech in July Gregory Mankiw of Harvard University set out in stark terms what must happen to bring to an end America’s unsustainable accumulation of debt. The five options: big cuts in government spending; extraordinary economic growth; large tax increase;  default; or large-scale money creation (ie, inflation). “Individually, each of these outcomes seems highly unlikely,” he noted. And yet logic dictates that some combination of them must happen.