Anyone else concerned about how the US will have to pay substantially higher rates on its debt? It is nearly 100% certain that our debt is going to be much more expensive to maintain. I guess there are two ways to pay for it:
1. Issue more debt
2. Raise taxes
We are not going to be doing option number 2, nor should we. We are going to have to issue more debt. Most people had thought that carrying lots of debt was not a big deal but I wonder if those views will change as interest rates rise.
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Why do you think number 2 won't happen? also the other thing we could do is cut spending.
Raising taxes in a declining economy is bad idea. Cutting spending would make the economy contract further. I don't think we are going to implementing tight monetary policy and tight fiscal policy at the same time.
Bad idea and Won't happen don't mean the same thing.
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