Austrian economists believe this house of cards is coming down. Debt printing will never stop and this can only fuel inflation in one form or another.

Isnt it ironic that the Austrians and Keynesians believe the same thing. You would think that after 40 years, both noticed what really happened.

As for interest rates, the challenge I see is that as they head higher, since our economy is so financialized, at some point in the "recovery" the added debt servicing cost will further step on the throat of the economy. Since neither the Fed nor Congress believes in austerity, they will keep crushing the main economy through their actions.

Since most citizens dont pay attention to the Fed, this will only further eradicate confidence in government, meaning that gov't debt will get more harder to sell.

Such a lovely box they put themselves in.

Also interesting the situation is much worse in the Eurozone.