Now we will see the effects of what doubling the debt does.
“Now we will see the effects of what doubling the debt does.”
There is a natural market price for money, just like everything else. Interest rates (at least for the big boys and mortgage seekers) are far too low, and the economy will be distorted until they find that natural level.
The problem is that we have built up a $20T tab that we have to keep rolling over because we can’t pay it off. The carrying costs are barely manageable at current super low rates. Go to realistic rates and financing the debt will immediately become the largest budget line-item, crowding out a lot of other things. I think we should take our medicine and let rates find their own level, but it will be bitter medicine indeed. It will send the economy into a tail-spin and virtually guarantee that Trump will be a one term president. Then, in time, things will get better.