Debt is created ex nihilo from the banking sector, so no real savings (that is, foregone consumption) needs to match it. The only thing constraining debt in ou

Debt is created ex nihilo from the banking sector, so no real savings (that is, foregone consumption) needs to match it. The only thing constraining debt in our system is the capacity of the economy to meet the ongoing payments. (If we had duration matched savings then debt would much more closely correspond to savings and there would be no danger of runs on the banking system.) When rates double it will be an economic catastrophe.