“ Does anyone really think investors will want to buy US debt approaching $50 trillion for an average of 3%, let alone 2.5%? Unless it is all at Fed-manipulated short-term rates which will let inflation once again grab hold? And I would point out that inflation is just another tax and another way to pay interest. Like the old Fram oil filter mechanic used to say: “Pay me now or pay me later.”

An average of 4% interest rates would be almost $2 trillion and it will certainly be approaching that by the early 2030s. If the Fed decides to launch the kind of financial repression it did after the Great Recession or in the late 1940s, I believe this will be inflationary at the levels of debt we will be financing. The longer-term debt will require higher rates simply because investors expect inflation. Can we run a country on short-term debt? We may find out. That is where the Minsky Ponzi scheme moment kicks in.“ mauldineconomics.com - Uncertain moments