“Yes, I know: Everyone’s bond yields have gone up, including Uncle Sam’s. Indeed, the U.S. 10-year Treasury yield was yielding 5.22 percent on Friday, higher than the French. And the U.S. deficit for 2027 will be about the same as the French. The difference is that the U.S. economy is growing at 6.3 percent nominal (including inflation). The equivalent number for France? It’s 1.9 percent. When growth is above the interest rate, you’re okay. When it’s the other way round, you’re heading for a crisis.” Sir @nfergus in @TheFP. (Link in replies.) The bond crisis/riots across Europe and deficits in the U.S. along with our national economic unease all share a common root: Countries cannot ignore the realities that (1) distributions from the government cannot exceed receipts forever; (2) total taxes cannot be increased beyond 50% without enormous resentment from the taxed and (3) countries’ economies must grow or those countries will become unstable. Thus it has always been. Thus it will always be. There isn’t any silver bullet. The vast majority of adults must work from 18 to 70 and beyond, and the work must mostly be within the private sector. The politics of the immediate future in the U.S. and abroad have to return to these realities: “Tax and spend” does not work, has never worked and won’t work next year or next decade. Elected officials have to grapple with entitlements across the globe or the unrest will grow. As Sir Niall Ferguson argues: Blame your grandparents. (Note: If you cut almost all your subscriptions but save “News Items,” @TheFP and @WSJ, you can be fully informed about what you need to know as everything else is actually available on multiple sites for free).