The Debt Shuffle

The debt shuffle games the politicians have been playing for decades may be in for a bit of a bump in the road. The politicians have been running trillion dollar deficits, backing trillions of private debt with public debt, and in general total disregard for fiscal restraint.

But I really don't blame the politicians, its the creditors willing to lend to the US government at historically low rates. Why not spend now and pay later, with such low rates?

Well, that game is in for a multi-decade challenge here and now, and its in the 30 year US treasuries. I am very curious to see what happens next, does rates break up, threatening the government debt load (and therefore solvency), housing prices, and corporations living on debt?
Or does the markets decline, causing fear and running money into treasuries, suppressing rates?

In any case, the US treasury interest rates for 30, 10, and 5 year notes below.

From WebSufinMurfs FinancialBlog2

From WebSufinMurfs FinancialBlog2

From WebSufinMurfs FinancialBlog2