I don’t see how this lasts long as the rise in rates will make the current deficit numbers far worse.
It will also cause interest payments on the national debt to skyrocket, causing the Federal Government to either raise taxes, cut spending in discretionary and non-discretionary spending, or BOTH.
Once the Fed raises taxes and cuts discretionary spending (money to the States) the States will then be forced to raise taxes, cut spending, or Both.
County and Municipal government swill then be forced into the same decision cycle.
Bottom line will be rising taxes at every level of Government, causing another deep recession and likely higher unemployment than we saw in the wake of the 2008 financial crisis.
Eventually the bills have to be paid, they're coming due faster than most people realize.