What the government is doing now is the equivalent of holding a 30-year mortgage at a 3% interest rate and refinancing it into a 4% one-year adjustable-rate mortgage. In other words, you are replacing longer-term, lower-cost debt with shorter-term, higher-cost debt. Now apply that to trillions of US dollars. That is effectively what the US Treasury is being forced to do as long-term yields surge. Unfortunately, the Treasury is largely playing the hand it has been dealt. The next phase of the US deficit spending crisis began today.(The Kobeissi Letter)