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Government Bonds Face 14% Loss Amid Wars, Pandemics

3/21/2026

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Summary

Story summary

A Center for Economic Policy Research report finds government bonds incur real losses during wars and pandemics, with U.S. and U.K. bondholders losing 14% in the first four years of conflicts.
The analysis covers 300 years of U.S. and U.K. history and shows inflation averaged 20% during periods.
With U.S. debt near $39 trillion amid the ongoing war on Iran, the report says financial repression could shift burdens to bondholders.

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Story summary

A Center for Economic Policy Research report finds government bonds incur real losses during wars and pandemics, with U.S. and U.K. bondholders losing 14% in the first four years of conflicts.
The analysis covers 300 years of U.S. and U.K. history and shows inflation averaged 20% during periods.
With U.S. debt near $39 trillion amid the ongoing war on Iran, the report says financial repression could shift burdens to bondholders.