Without the Fed back stopping the Bond market I bet the real rates would be at least 8% or more. But we have a artificial low rate and are borrowing money at a blended rate of around 3 to 3.5%. When it finally starts moving then trying to pay just the Interest on the Debt will start eating the entire US budget unless health care costs get us first.
I know. No matter who my friends voted for, many don’t see a happy ending, or at least most are smart enough to know it would take a lot of pain for at least a few years to get things on track.
With this country’s makeup now, I don’t see that happening.