This is the big key. If the interest rate rises to the point our National Debt payments exceed our ability to repay, the dollar crashes to virtually worthless. The plummet will be catastrophic and instantaneous. We borrow money every year to operate. The TBill interest rates were next to nothing, so we could afford to repay, but the train was going to stop eventually, but the last stop is a mountainside and there is no tunnel.
The other factor is the US debt. They can not keep raising rates as it makes paying off US debt that much harder.
This is the big key. If the interest rate rises to the point our National Debt payments exceed our ability to repay, the dollar crashes to virtually worthless. The plummet will be catastrophic and instantaneous. We borrow money every year to operate. The TBill interest rates were next to nothing, so we could afford to repay, but the train was going to stop eventually, but the last stop is a mountainside and there is no tunnel.