The Globe and Mail reports in its Wednesday edition that the global economy faces a troubling phase for bond markets. A Reuters dispatch to The Globe reports that unlike previous big government spending episodes, there is no financial crisis or pandemic driving the need for trillions of dollars. Far from it. Governments are loosening their purse strings to adapt to a new reality: Globalization is giving way to polarization, isolationism and rising geopolitical tensions. Promises to increase spending on defence, energy and technology may strain public finances still recovering from the COVID-19 pandemic. With rising debt, deficits and yield curves, market anxiety may grow, causing bond investors to demand higher yields to absorb the excess supply. Central banks can no longer be depended on to pick up the slack. Federal Reserve Chair pick Kevin Warsh says the Fed should reduce its balance sheet. The Bank of England and European Central Bank are also shrinking theirs. Governments are easing the burden by issuing more short-term bills and reducing debt maturity. The goal is for extra borrowing to generate enough growth to stabilize debt-to-GDP ratios and ensure debt sustainability, as fiscal discipline seems unlikely.