US National Debt on Brink of Passing $40 Trillion | Balance of Power 08/18/2026

Summary

The episode covers US-Canada tariff brinkmanship, primary-day politics in Florida, Alaska and Wyoming, DOJ election-monitor concerns, and the bond market selloff as US debt nears $40 trillion. Emily Graffeo explains that long-term Treasury yields are at multi-year highs because bondholders are demanding more compensation and expect higher-for-longer rates. Maya MacGuineas links rising yields to deficits and warns that deficit reduction is the most important sustainable fix for affordability.

• US and Canada face a midnight tariff deadline with a last-minute deal seen as unlikely.
• Florida, Alaska and Wyoming primaries offer signals on Trump's GOP influence and Democratic divisions.
• DOJ plans to deploy about 1,000 election monitors, raising civil-rights and voter-privacy concerns.
• Long-term Treasury yields hit the highest level since 2007, with the 30-year yield above 5.3%.
• Corporate borrowers are favoring debt maturities of five years or less, expecting higher-for-longer rates.
• US debt is nearing $40 trillion earlier than expected, with deficits and interest costs pushing bond yields higher.
• Maya MacGuineas urges deficit reduction as a lasting affordability fix and warns Social Security is about six years from insolvency.