I don’t think raising rates like “Tall Paul” (Volcker) did would help in this situation. We are in a bit of a pickle. Raising rates would cause the servicing costs to become enormous and would likely just result in even more debt. The alternative, lowering rates, would likely cause a massive spike in inflation. Inflation makes the debt easier to manage because it’s worth less, but then that wreaks havoc on everyone (especially folks on fixed income).

I think the only way out is to reduce military spending, nationalize the health care system, and tax the hell outta the ultra wealthy. But I suspect that won’t happen at least based on the current oligarchy running the country.

It’s really unfortunate too, because we could be taking on debt to invest in citizens like making college free, improving teacher salaries, and general infrastructure but… we ain’t.