[Freedom_Is_Not_Free]

Precisely. They can’t raise rates and still service the debt. They are screwed.

No, make that WE the middle class are screwed.

[cgbg]

They can “service” the debt by creating more credit to service the debt...but that just creates an inflationary nightmare in the form of an infinite inflationary spiral.

(More debt needs more interest which requires more debt which requires more interest.....)

Since the dollar is (for now) the world’s primary currency for international trade that means that the entire world will be a part of that nightmare—until they decouple from the dollar.

Btw we have one example happening in Turkey right now:

https://www.zerohedge.com/markets/turkey-halts-all-stock-trading-currency-disintegrates-central-bank-powerless-halt-collapse

[Obadiah]

Here’s what I wonder.

They will raise interest rates because they simply have to to avoid disaster. I don’t think they care about the cost of servicing the national debt because Mitch and the gang will forever raise the debt limit. If they keep raising the limit, does it matter if they raise the rates?

Just a thought.