God forbid Krugtard honestly tell people what happens after rates are risen and what happens when that fails to cure Big Governments appetite, grotesque spending and mounting debt.
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No matter what the rates are, the Fed gets 18-20% of GDP. Every time. The only thing higher rates do is slow the growth of GDP. They haven't reversed the growth, at least not by themselves, but I am willing to bet Krugman wants to explore that uncharted territory. And I love the "Why not raise it to 100%" argument. Liberals always argue there is no effect to raising rates, and I always ask why not make it 100%. Do you think there will be an effect then? Then you get that dull stare and some look of condensation, but never a rebuttal. .
