Financial prep - watch for rising interest rates, long-term impact

[ATCclears]

My summary:

• Don't be surprised with continued increases in interest rates.
• This may cause a decline in home prices in most housing markets.
• This will certainly curtail spending by people who have to service their personal debt (e.g. credit card, car loans) due to rising interest rates.
• By 2025 things will be "interesting". What will the politicians do when they cannot continue the promises, pensions, and social programs? War as a distraction?

First, this:
Thanks to the "exorbitant privilege" I discussed earlier this month, the US has long had many foreigners willing to buy our debt. Now they are losing interest (forgive the pun) because hedging their currency exposure costs more. There are some complex reasons behind this, relating to swaps and the differentials between the US economy and others, but here's the bottom line: European and Japanese investors can no longer buy US Treasury debt at a positive rate of return unless they want to take currency risk, which most do not. This is a new development.
Debt Alarm Ringing


Then, a quote:
Bonds are our hole in the Titanic, the band plays on as the ocean pours in.


Then, this with some interesting charts and forecasts.
Interest paid on US debt will pass Medicaid in 2019 and Defense in 2023 - NextBigFuture.com Interest paid on US debt will pass Medicaid in 2019 and Defense in 2023

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[Martini_Up]

I see bonds as the pumps in the titanic and spending as the hole. But to get the pumps into the engine room we have to tear the hole bigger to get them in