I lived through that as well shoveler. There are a few major differences and they are basic yet fundamental.
From 1978 to 1981 we saw the 10 year treasury yield move from 8.15% to a little over 15%. That is fairly staggering.
Here is the key to that event. When that event happened, our country did not have 100s of billions of interest due annually.
Here is another key, our ten year yields now are well below 5%, in fact they are below 2%. Projected debt loads and interest payments are all done with current rate levels in mind.
Now if we take those two keys and apply them to the amount of debt we have today and our out of control deficit, it is game over.
The deflation we have now is the precursor to a much harsher future, way way harsher then the 70s and 80s if rates move quickly and we dont get our sht together. The only way out of the mess is that we RAISE TAX REVENUE AND SPEND WAY WAY LESS BEFORE AND keep a tight lid on the rate of increase for rates, or better yet duplicate the lost decade Japan has had. If we can duplicate that decade and rein in our debt to get out from under 9 digit interest payments then we will be fine.
Here is an old link from seeking alpha that is pretty good.
