Honestly I don't think the current economy can take higher interest rates. Our economy and businesses thrive on cheap interest loans. Many of these companies are struggling paying off a few percent interest. In order to make up for this, they need more revenue. This means increased prices but looking at the economic data, prices are going up but the businesses can't offload the cost to the consumer right now.

Either way if the bond bear market happens, I expect a huge problem to occur in the economy. Not to mention the government raising taxes to pay off their interest.

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