Investors and citizens, because they have never known differently, consider constantly rising debt without consequence as normal. Most “experts” will earnestly state that as long as interest rates remain low we can “handle the borrowing” (as if it makes any difference that Spain, with 25% unemployment, can manage debt at 6% but not 7%); that we can continue to have multi-trillion dollar debts, monetize the deficit and buy our way out of trouble and all will be well.
It won’t.