I don't understand these, let's look at them one at a time.
1)
>> Interest rates don't immediately go up.
But the ops question is what if rates did go up (wouldn't it be unaffordable for the government). So your answer seems to be a different scenario to the one discussed? What am I missing?
2)
>> Because the government has ways to ensure that they do not have to pay too much to service the debt.
What ways, specifically? There's just not enough information to be able to make sense of the answer?
3)
>> Because the government doesn't have to issue new debt to pay the old debt.
Can you explain how this works? If they don't issue new debt, where does the money come from the pay the old debt? It's not like they are going to suddenly come into massive surplus by reducing all other spending is it?
4)
>> Etc.. etc.. etc..
I'm seriously thinking about this question, if there's any real reasons, very interested to hear?
I admit I'm not an expert here - but unless someone comes to be with a really good argument why the US Government is on verge of collapse b/c of raising rates (they are the ones why raise rates!!!) I am not sure how much I need to prove the counterpoint?
1)
>> Interest rates don't immediately go up.
But the ops question is what if rates did go up (wouldn't it be unaffordable for the government). So your answer seems to be a different scenario to the one discussed? What am I missing?
2)
>> Because the government has ways to ensure that they do not have to pay too much to service the debt.
What ways, specifically? There's just not enough information to be able to make sense of the answer?
3)
>> Because the government doesn't have to issue new debt to pay the old debt.
Can you explain how this works? If they don't issue new debt, where does the money come from the pay the old debt? It's not like they are going to suddenly come into massive surplus by reducing all other spending is it?
4)
>> Etc.. etc.. etc..
I'm seriously thinking about this question, if there's any real reasons, very interested to hear?