Rich’s article is retarded. If interest rates go up, the value of existing U.S. debt will go down and the Federal Reserve can actually buy that old debt back at a cheaper overall cost than if interest rates were to go down or stay the same. This is just a simple present value analysis.
If interest rates stay the same or go down there is also no debt crisis.
All that’s needed is for taxes on the criminal super-rich to go up a bit. Not a big deal.
Rich’s article is just a reiteration of the tired, old ‘invisible bond vigilantes’ argument that Paul Krugman has shot down a zillion times. If you really want to learn about economics (as opposed to poorly-written deficit fear-mongering), read Paul Krugman’s blog:
