As the Fed raises interest rates to normal levels "5%", our government will pay $900 billion a year more in interest, more than doubling the deficit.
This will be the tipping point since 65% of our government debt is financed using three year notes, or sub prime. Once markets sense that deficits are unsustainable, buyers will flee, like China already has.Based on these facts, the Fed can NEVER raise interest rates no matter how much inflation it creates.We are nearing an end to our debt binge. http://www.realclearpolitics.com/articles/2013/03/04/treasury_needs_a_better_long_game_117261.html
