The interest rate has been buried artificially. Why do you think real estate values have more than doubled since 9/11? How great is that? THAT is an "inflation" that's not talked about much. But THAT'S the reason the economy has been so "remarkable -- cheap money...
But it's a mathematic reality that the piper WILL be paid. We can't keep on borrowing from Peter to pay Paul.
The treasury is not a bottomless pit of receipts.
If you think taxes won't have to be raised -- whether through a rate hike OR VAT assessments, or other "innocuous" federal taxes, you're naive.