Rising Interest Rates Reveal Fragility After Decades of Ultra-Low Rates

Interest rates fell dramatically from 1980 to 2020, distorting finance and economics.
This extended period of ultra-low rates fueled poor financial management and excessive risk taking.
As rates rise, higher borrowing costs will reveal weaknesses, like overextended investors and governments.
The UK faces a fiscal bind with high deficits, rising interest costs, and unconvincing plans to control debt.
Bond markets are newly skeptical of Western debt sustainability, demanding credible plans for deficit reduction.