Government borrowing costs are spiking worldwide and the people lending the money are pushing back, which is bad news for savers, homebuyers, and anyone outside the AI stock boom.

• The world owes $365 trillion, and interest alone now costs the US over a trillion dollars a year.
• Trump has said inflation will pay off the debt, so lenders are demanding higher rates to protect themselves — pushing the 10-year rate to its highest since 2002.
• Treasury Secretary Scott Bessent tried to outbuy the bond market and admitted he could not; British, Japanese, and French rates are climbing too.
• China is the exception: its rates are falling because it spent 20 years borrowing to build real things and lets bad property bets fail instead of bailing them out.
• Strip out AI and chip stocks and the US market is down 5% since August, while mortgage rates above 7% have frozen housing to 1995 levels.

Outlook: With $8 trillion of cheap old debt rolling into expensive new debt within a year, long-term rates look headed higher and the strain on housing and non-AI stocks should get worse.