Thursday, September 3, 2026

Americans’ ‘government corruption’ problem is in a new league by Zachary B. Wolf

 

It is not news, or surprising, that Americans are worried about government corruption.

They twice elected Donald Trump, who twice promised to drain the “swamp” of Washington, DC.

“We are transferring power from Washington, DC, and giving it back to you, the American People,” he said in his first inaugural address. 

 In his second inaugural address, Trump promised to liberate the country from “a radical and corrupt establishment” that “extracted power and wealth from our citizens.” 

 On that promise, there’s striking new evidence that Americans believe he has failed to deliver.

 

It should be of some concern to the White House — and to every American, really — that 89% of Americans said “yes” in a Gallup poll when asked, “Is corruption widespread throughout the government in this country, or not?”

Gallup isn’t alone on this. The University of Massachusetts at Amherst is also out with a poll Tuesday in which 97% of Americans — nearly everybody — says there is some corruption in government. A smaller portion, 75%, said there is “a great deal” of corruption in the UMass poll. 

 

A version of this story appeared in CNN’s What Matters newsletter. To get it in your inbox, sign up for free here.

It is not news, or surprising, that Americans are worried about government corruption.

They twice elected Donald Trump, who twice promised to drain the “swamp” of Washington, DC.

“We are transferring power from Washington, DC, and giving it back to you, the American People,” he said in his first inaugural address.

In his second inaugural address, Trump promised to liberate the country from “a radical and corrupt establishment” that “extracted power and wealth from our citizens.”

On that promise, there’s striking new evidence that Americans believe he has failed to deliver.

President Donald Trump after ringing the opening bell for the New York Stock Exchange and Nasdaq during an event to mark the launch of "Trump Accounts" in the Oval Office on July 6, 2026.

It should be of some concern to the White House — and to every American, really — that 89% of Americans said “yes” in a Gallup poll when asked, “Is corruption widespread throughout the government in this country, or not?”

Gallup isn’t alone on this. The University of Massachusetts at Amherst is also out with a poll Tuesday in which 97% of Americans — nearly everybody — says there is some corruption in government. A smaller portion, 75%, said there is “a great deal” of corruption in the UMass poll.

Decades of polling has found widespread frustration with and mistrust of government, but the new data from Gallup is notable for two main reasons.

First, Americans are more likely to see widespread corruption than people in other OECD countries

Gallup is still collecting data from all 38 countries in the Organization for Economic Cooperation and Development (OECD) for 2026, but the preliminary indication is that the US is now in a class of its own in terms of how its people view government corruption.

The US already outpaced other OECD countries in Gallup’s polling, but while the average corruption perception has been below 60% since 2022, it has now shot up for the US, which has been above 70% since 2010. In 2025, the US was tied with Colombia at 79%. 

 

What changed?

Second, Republicans still agree there is widespread government corruption — even though they control the government

Usually, as Gallup notes, when power changes hands, those who favor the winning party are less likely to see corruption. That expected drop has not happened. Instead, the 83% of Republicans who see widespread corruption in the most recent poll is broadly in line with the 87% who said corruption was widespread in 2024, the final year of President Joe Biden’s administration.

At the time, Republicans worked very hard to portray Biden’s family, particularly his son Hunter, as corrupt, which the Bidens vehemently denied. 

 

In the meantime, while Republicans have not abandoned their perceptions of corruption, 91% of Democrats and 90% of political independents see widespread corruption.

Very few issues see such cross-party agreement. And lawmakers are not doing much to counter the trend. 

 

A version of this story appeared in CNN’s What Matters newsletter. To get it in your inbox, sign up for free here.

It is not news, or surprising, that Americans are worried about government corruption.

They twice elected Donald Trump, who twice promised to drain the “swamp” of Washington, DC.

“We are transferring power from Washington, DC, and giving it back to you, the American People,” he said in his first inaugural address.

In his second inaugural address, Trump promised to liberate the country from “a radical and corrupt establishment” that “extracted power and wealth from our citizens.”

On that promise, there’s striking new evidence that Americans believe he has failed to deliver.

President Donald Trump after ringing the opening bell for the New York Stock Exchange and Nasdaq during an event to mark the launch of "Trump Accounts" in the Oval Office on July 6, 2026.

It should be of some concern to the White House — and to every American, really — that 89% of Americans said “yes” in a Gallup poll when asked, “Is corruption widespread throughout the government in this country, or not?”

Gallup isn’t alone on this. The University of Massachusetts at Amherst is also out with a poll Tuesday in which 97% of Americans — nearly everybody — says there is some corruption in government. A smaller portion, 75%, said there is “a great deal” of corruption in the UMass poll.

Decades of polling has found widespread frustration with and mistrust of government, but the new data from Gallup is notable for two main reasons.

First, Americans are more likely to see widespread corruption than people in other OECD countries

Gallup is still collecting data from all 38 countries in the Organization for Economic Cooperation and Development (OECD) for 2026, but the preliminary indication is that the US is now in a class of its own in terms of how its people view government corruption.

The US already outpaced other OECD countries in Gallup’s polling, but while the average corruption perception has been below 60% since 2022, it has now shot up for the US, which has been above 70% since 2010. In 2025, the US was tied with Colombia at 79%.

What changed?

Second, Republicans still agree there is widespread government corruption — even though they control the government

Usually, as Gallup notes, when power changes hands, those who favor the winning party are less likely to see corruption. That expected drop has not happened. Instead, the 83% of Republicans who see widespread corruption in the most recent poll is broadly in line with the 87% who said corruption was widespread in 2024, the final year of President Joe Biden’s administration.

At the time, Republicans worked very hard to portray Biden’s family, particularly his son Hunter, as corrupt, which the Bidens vehemently denied.

President Joe Biden, accompanied by his son Hunter Biden, walks out of a bookstore in downtown Nantucket, Massachusetts, on November 29, 2024.

In the meantime, while Republicans have not abandoned their perceptions of corruption, 91% of Democrats and 90% of political independents see widespread corruption.

Very few issues see such cross-party agreement. And lawmakers are not doing much to counter the trend.

In the UMass poll, respondents were asked to rank four governmental institutions from most to least corrupt. Most people — 53% — listed the president first, compared with 18% who listed Congress first. Forty-one percent listed Congress as the second most corrupt branch of government. Fewer pointed to courts and the federal bureaucracy first or second.

The Trump family sees opportunity in Trump 2.0

After accusing Biden of trying to enrich his family through the presidency, Trump’s family has adopted a YOLO attitude toward wealth acquisition during Trump 2.0. The dollar figures the Trumps appear to be bringing in could dwarf what Hunter Biden was paid to sit on corporate boards.

In the UMass poll, 77% said the president should not or definitely should not be profiting from business ventures that could be affected by the policies and decisions of his administration. 

 

One Trump-aligned company, Trump Media, is selling early access to his social media posts, giving Wall Street firms who can afford up to $100,000 a month possible early looks at some of his policy decisions.

Trump’s sons both have interests in defense contractors at a time when President Trump is pushing for a gobsmacking $1.5 trillion Pentagon budget, which would be an increase of nearly $500 billion in one year.

Overseeing their father’s assets, sons Eric and Don Jr. founded a firm, World Liberty Financial, along with the son of his Mideast and Ukraine negotiator Steve Witkoff, to capitalize on the craze around cryptocurrency. All of this is happening at a time when President Trump is taking a hands-off approach to regulation. 

 They are pursuing overseas deals at a time when their father is seeking trade deals.

Trump doesn’t think Americans mind

“I found out that nobody cared,” he told the New York Times back in January, suggesting he feels entitled to mix business and politics. He said he tried to separate the two during his first term and “got no credit.” 

 Don Jr. and Eric Trump say they do not discuss business with their father. The sons of other top Trump administration officials, including Witkoff and Commerce Secretary Howard Lutnick, are also working business angles that touch their wealthy fathers’ public jobs. 

 

A version of this story appeared in CNN’s What Matters newsletter. To get it in your inbox, sign up for free here.

It is not news, or surprising, that Americans are worried about government corruption.

They twice elected Donald Trump, who twice promised to drain the “swamp” of Washington, DC.

“We are transferring power from Washington, DC, and giving it back to you, the American People,” he said in his first inaugural address.

In his second inaugural address, Trump promised to liberate the country from “a radical and corrupt establishment” that “extracted power and wealth from our citizens.”

On that promise, there’s striking new evidence that Americans believe he has failed to deliver.

President Donald Trump after ringing the opening bell for the New York Stock Exchange and Nasdaq during an event to mark the launch of "Trump Accounts" in the Oval Office on July 6, 2026.

It should be of some concern to the White House — and to every American, really — that 89% of Americans said “yes” in a Gallup poll when asked, “Is corruption widespread throughout the government in this country, or not?”

Gallup isn’t alone on this. The University of Massachusetts at Amherst is also out with a poll Tuesday in which 97% of Americans — nearly everybody — says there is some corruption in government. A smaller portion, 75%, said there is “a great deal” of corruption in the UMass poll.

Decades of polling has found widespread frustration with and mistrust of government, but the new data from Gallup is notable for two main reasons.

First, Americans are more likely to see widespread corruption than people in other OECD countries

Gallup is still collecting data from all 38 countries in the Organization for Economic Cooperation and Development (OECD) for 2026, but the preliminary indication is that the US is now in a class of its own in terms of how its people view government corruption.

The US already outpaced other OECD countries in Gallup’s polling, but while the average corruption perception has been below 60% since 2022, it has now shot up for the US, which has been above 70% since 2010. In 2025, the US was tied with Colombia at 79%.

What changed?

Second, Republicans still agree there is widespread government corruption — even though they control the government

Usually, as Gallup notes, when power changes hands, those who favor the winning party are less likely to see corruption. That expected drop has not happened. Instead, the 83% of Republicans who see widespread corruption in the most recent poll is broadly in line with the 87% who said corruption was widespread in 2024, the final year of President Joe Biden’s administration.

At the time, Republicans worked very hard to portray Biden’s family, particularly his son Hunter, as corrupt, which the Bidens vehemently denied.

President Joe Biden, accompanied by his son Hunter Biden, walks out of a bookstore in downtown Nantucket, Massachusetts, on November 29, 2024.

In the meantime, while Republicans have not abandoned their perceptions of corruption, 91% of Democrats and 90% of political independents see widespread corruption.

Very few issues see such cross-party agreement. And lawmakers are not doing much to counter the trend.

In the UMass poll, respondents were asked to rank four governmental institutions from most to least corrupt. Most people — 53% — listed the president first, compared with 18% who listed Congress first. Forty-one percent listed Congress as the second most corrupt branch of government. Fewer pointed to courts and the federal bureaucracy first or second.

The Trump family sees opportunity in Trump 2.0

After accusing Biden of trying to enrich his family through the presidency, Trump’s family has adopted a YOLO attitude toward wealth acquisition during Trump 2.0. The dollar figures the Trumps appear to be bringing in could dwarf what Hunter Biden was paid to sit on corporate boards.

In the UMass poll, 77% said the president should not or definitely should not be profiting from business ventures that could be affected by the policies and decisions of his administration.

One Trump-aligned company, Trump Media, is selling early access to his social media posts, giving Wall Street firms who can afford up to $100,000 a month possible early looks at some of his policy decisions.

Trump’s sons both have interests in defense contractors at a time when President Trump is pushing for a gobsmacking $1.5 trillion Pentagon budget, which would be an increase of nearly $500 billion in one year.

Overseeing their father’s assets, sons Eric and Don Jr. founded a firm, World Liberty Financial, along with the son of his Mideast and Ukraine negotiator Steve Witkoff, to capitalize on the craze around cryptocurrency. All of this is happening at a time when President Trump is taking a hands-off approach to regulation.

They are pursuing overseas deals at a time when their father is seeking trade deals.

Trump doesn’t think Americans mind

“I found out that nobody cared,” he told the New York Times back in January, suggesting he feels entitled to mix business and politics. He said he tried to separate the two during his first term and “got no credit.”

Don Jr. and Eric Trump say they do not discuss business with their father. The sons of other top Trump administration officials, including Witkoff and Commerce Secretary Howard Lutnick, are also working business angles that touch their wealthy fathers’ public jobs.

Donald Trump Jr. and Eric Trump mark the $1.5 billion partnership between World Liberty Financial and ALT5 Sigma with the ringing of the Nasdaq opening bell in New York, on August 13, 2025.

Lutnick, pressed on CNBC about the perception of a conflict in a mining deal that benefits his family and Trump’s, dismissed “silly questions” and a “waste of time.”

The president also apparently does not have direct control over his stock portfolio, so it is at least possible he does not know about the 1,000-plus recent stock trades made on his behalf by third-party financial institutions, including in energy companies affected by his war on Iran. The trades were disclosed in government-mandated disclosures to the Office of Government Ethics.

Top Democrats play the market too

Trump isn’t the only politician playing the market. Tracking the trades of members of Congress, including wealthy Democrats such as Reps. Nancy Pelosi and Ro Khanna of California, has become an investment strategy for people who want to buy the same stocks as lawmakers from either or both parties. It has also led to growing bipartisan calls, but no concrete action, for a ban on members of Congress and their direct family members trading stocks. A large, bipartisan majority of Americans support passing such a ban

 

No commitment not to cash in

Defense Secretary Pete Hegseth, who prefers to be called secretary of war, was critical, before his nomination to join the Trump administration, of generals working for defense contractors. But he notably declined, when pressed by Democratic Sen. Elizabeth Warren, to pledge not to work for a defense contractor for 10 years after he leaves office. 

 “I’m not a general, senator,” Hegseth told Warren at his confirmation hearing. More recently, he and Warren tangled at a congressional hearing over whether the Pentagon should be doing anything to investigate well-timed oil market bets before Trump launched the war in Iran.

Warren’s own one-percenter wealth — divulged when she released tax returns during a 2020 presidential run — could be construed as antithetical to her progressive bona fides, although her wealth was built through her and her husbands’ healthy salaries as professors and her book deals rather through than stock trades.

Many of the people who are elected to office are wealthy. (And simply having money in index funds would have inflated anyone’s bottom line in recent years.) That is clearly different from using knowledge or access to gain an upper hand.

Meanwhile, the debt accrues

A larger issue than the money made by lawmakers in their private pursuits may be how the government spends money at a time when the national debt has eclipsed $40 trillion

 

Trump’s administration has sounded the alarm about government spending, but then cut revenues with massive tax cuts that will only generate more revenue far down the road, if ever.

Promises that fizzled

Elon Musk, the world’s richest individual, was brought in as a special government employee early in the Trump administration with directions to cut government spending and whittle down the bureaucracy.

But it’s not clear what, if anything, he actually accomplished other than making wild, frequently unfounded accusations about fraud and corruption in social safety net programs. Musk ultimately left government to return to his companies, which benefit from government contracts, and briefly became the world’s first trillionaire. He’s still doing OK. The nearly $300 million we know about that he spent helping get Trump elected in 2024 can be viewed as a solid investment. 

 t the same time, the increasing murkiness of US election spending means we don’t know exactly who is spending what to get candidates elected

 

Trump has also made wild and unverified claims about fraud throughout government and repeatedly alleged corruption in US elections. All of these claims could appeal to his political base, which identifies with his claim that the system is rigged against them. And Democrats have alleged that his moves are a threat to democracy and the right to vote is under threat.

Take a step back, and the vast majority of Americans just see corruption.

 



Wednesday, September 2, 2026

Why the rise in government debt is freaking out the bond market by Mark Crosby

 

Mortgage holders know interest rates have risen over the past year, as the Reserve Bank of Australia (RBA) lifted the cash rate to fight inflation. But mortgage holders are not alone: governments and business borrowers are facing the same pressure.

Australia’s government now has to offer investors more than 5% on its 10-year bonds, which hit a 15-year high on Tuesday after a long period of low interest rates since the global financial crisis in 2008.

In the United States, 10-year interest rates sit around 4.7%, surging nearly half a per cent just this year, while the benchmark 30-year bond is near a two-decade high. In the UK, 10-year bond rates on Tuesday hit the highest level since the global financial crisis.

Higher rates mean higher interest payments for governments too, leaving less room for other spending or for tax cuts.

This applies not just to the federal government here but to the states, whose borrowing costs have also jumped. For example, Victoria’s 10-year bonds now pay an interest rate of 5.55%.

So what’s actually driving market interest rates higher?

 

Supply and demand

Governments issue bonds to raise money and finance spending that isn’t covered by tax revenue.

Like any asset, the price of a government bond depends on supply and demand. Less bond supply means issuers (governments or companies) don’t need to offer higher rates to attract buyers; more supply pushes rates up.

Bond issuance comes from three main sources:

  1. households – borrowing for mortgages, which the banks can then repackage into bonds and sell to investors.

  2. businesses – issuing bonds to fund operations. In the US, AI-sector firms such as Amazon and Microsoft have issued about US$240 billion in debt to fund data centres. Even in Australia, Google owner Alphabet launched a huge A$5.5 billion bond last month.

  3. governments – governments often have large debts they have built up because of their past budget deficits. Like anyone, if you spend more than you earn, you need to borrow.

The main driver is government debt

The larger a government’s debt, the more bonds it must issue – and the higher the interest rates needed to attract investors.

US national debt has grown to more than US$40 trillion – more than 20 times the size of Australia’s entire economy – while Australia’s federal government debt recently passed A$1 trillion

 

Funding debts of this size is pushing up interest rates worldwide. At the same time, some bond investors are getting concerned by the high levels of US government debt and the lack of plans to curb spending, so they are demanding higher interest rates on government bonds.

What central banks can do

The Reserve Bank of Australia (RBA) manages interest rates through the “cash market” – short-term borrowing of less than a day – using the cash rate to influence demand for borrowing. Raising interest rates ultimately dampens economic demand and reduces inflation.

The RBA cash rate affects borrowing costs across the economy for all other forms of debt – car loans and credit cards as well as mortgages, and corporate debt.

But the RBA can’t directly influence longer-term interest rates such as 10-year bonds, which are market rates and fluctuate constantly based on investors’ demand.

If the RBA cut rates sharply right now, for instance, bond investors would likely read this as inflationary – pushing up inflation expectations and, in turn, the interest rates demanded on longer-term bonds. The RBA’s action would end up being counterproductive.

America’s ‘exorbitant privilege’ – and its limits

The US has long enjoyed a unique position in global markets: it can issue growing volumes of government bonds without needing to offer higher rates to attract buyers.

This “exorbitant privilege” stems from the US dollar’s dominance in global trade and financial transactions, and the widespread trust that central banks and private investors place in US government debt.

US Treasury Secretary Scott Bessent has tried to capitalise on this by intervening in the bond market, aiming to shrink supply and push market interest rates lower. That would reduce the interest bill for the US government.

The US Treasury increased the amount of debt it is buying back, but the buybacks only had a brief impact on the market.

Investors concluded the buybacks don’t change the underlying picture: increasing US government financing needs, fears of rising inflation, as well as growing corporate bond issuance to fund AI and data centres. All these forces tend to push interest rates higher over the medium to long term, and no financial engineering can undo this reality.

Rates are rising around the world

Across many countries, bond market rates are rising because higher inflation is eroding the real returns for investors. They are demanding more compensation to protect their spending power.

This is compounded by rising bond issuance from both governments and companies. No amount of financial engineering from the US Treasury can reverse these forces.

Central banks and governments can influence short-term interest rates to some degree.

But longer-term debt such as 10-year bonds are ultimately priced on three things:

  • expected inflation
  • the scale of government debt and financing needs
  • and the level of corporate and household borrowing.

The best thing any central bank can do to keep market interest rates low is set policy so inflation remains low.

That’s the purpose of the RBA’s inflation target of 2–3%. As well as keeping a lid on consumer inflation expectations, it lets bond investors know inflation should return to that level in the medium term, and so market interest rates don’t get too high.

Trump says the US doesn’t need Canada. The economy says otherwise by ROB GILLIES

 

U.S. President Donald Trump says his country does not need Canada. But every day, roughly 4 million barrels of Canadian crude oil flow south, helping fuel American cars, trucks and airplanes and supply U.S. industry.

And oil is only the beginning.

Canada also supplies aluminum, potash to U.S. farms and parts for an auto industry built on both sides of the border.

“WE DON’T NEED CANADA, THEY NEED US!” Trump posted this week, repeating his long-running claim.

Yet Trump has imposed a 50% tariff on Canadian aluminum while acknowledging this week that the United States badly needs the metal.

“This country desperately needs aluminum,” Trump said. “We don’t have it. We get it all from Canada for the most part, and we need it badly.”

The contradiction underscores how deeply the two economies remain intertwined — and how much could be at stake if Trump’s trade war reaches more of the energy, materials and supply chains that the U.S. still relies on Canada to provide.

 

Canada fuels American industry

Canada is the second-largest U.S. trading partner after Mexico, and energy is at the heart of that relationship.

The two countries exchanged about $872 billion in goods and services last year. Canadian crude imports equal nearly 20% of total U.S. petroleum consumption, according to the U.S. Energy Information Administration, part of the Department of Energy.

 

Daniel Béland, a political science professor at McGill University, said Trump’s claim that the U.S. doesn’t need Canada is “absolutely false,” citing U.S. reliance on Canadian oil and natural gas and deeply integrated industries such as autos.

Much of Canada’s crude flows to Midwest refineries built to process its heavy oil into gasoline, diesel and jet fuel.

Energy also explains much of the U.S. trade deficit with Canada, which Trump frequently cites as evidence of an unfair relationship.

The White House this week portrayed the relationship in starkly negative terms, saying Canada had taken roughly $50 billion a year from the U.S. over the past decade. Much of that gap reflects U.S. purchases of Canadian energy, which helps power the U.S. economy. And Canada’s heavy crude typically trades at a discount to U.S. benchmark oil, according to the U.S. Energy Information Administration.

Energy more than accounted for last year’s $48.3 billion goods deficit. Without energy, the U.S. would have run a trade surplus.

After trade talks collapsed last Friday, the U.S. imposed 50% tariffs on about $20 billion worth of Canadian goods. The measures cover only about 5% of Canadian exports to the U.S. and exclude energy.