How do inflate debt without additional borrowing? Higher in…
How do inflate debt without additional borrowing? Higher interest rates. People saying the Fed cannot hike because of the debt have it backwards.
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They are right about the cost, but wrong to expect Fed control. The path of rates will be determined by the economy and demand for safety. If stocks go into a long bear market and dollar long bull market as in Japan, QE-type policy can restart. That's the Rubicon that has been crossed.