As soon as rates go up, it starts the decline in the ability for the government to spend. And it won’t take long before debt service consumes the Federal Budget.
That will be fun to watch. Not.
100%
They know they cant hike the rates.
Its like the Mob whish used to go out and clip anyone who didnt pay up. Then they quit doing that because if the guy was making any payments at all, they were getting money and the guy kept getting deeper into them because he couldnt make the interest payments they demanded.
Eventually, they would clip him after they sucked him dry and he couldnt pay anything at all.