https://hotair.com/headlines/archives/2012/10/12/the-interest-rate-death-spiral-and-the-case-for-romneyryan/feed/HotAir is the leading conservative blog for breaking news and commentary covering the Biden administration, politics, media, culture, and current elections.en-usTue, 09 Jun 2026 11:12:28 -0400<![CDATA[Here is the basic pattern of the interest rate &#8220;death spiral.&#8221; A country&#8217;s interest rates increase, making it harder to make the basic payments on its debt. This make lenders even more nervous, so they increase rates even more, making it even harder to service the debt, which makes lenders raise rates again, and so on. You want an idea of how bad this can get and how fast? Check out this grim little graph, which shows interest rates on Greek debt spiking from a little over 3% to 30% in about two years. That&#8217;s what a real sovereign debt crisis looks like, and you can see how Greece had no way out without intervention from a larger and wealthier country like Germany.]]>Fri, 12 Oct 2012 17:35:08 -0400<![CDATA[Allahpundit]]>https://hotair.com/headlines/2012/10/12/the-interest-rate-death-spiral-and-the-case-for-romneyryan-n96542