More ominous than the threat posed by rising interest rates to the stock market, is the one posed to the Federal budget. Higher rates will reduce tax revenue as it increases debt service costs. Widening budget deficits will push rates even higher, creating a dangerous cycle.

More ominous than the threat posed by rising interest rates to the stock market, is the one posed to the Federal budget. Higher rates will reduce tax revenue as it increases debt service costs. Widening budget deficits will push rates even higher, creating a dangerous cycle.

— Peter Schiff (@PeterSchiff) January 19, 2018