Market forces will bring down the American Eagle

"Just when the adverse market reactions will occur cannot be predicted. But when they do so, the U.S. economy will be crushed by an avalanche of unstoppable magnitude.
Once creditors determine that U.S. Treasury’s are no longer the safest form of investment available, demand for those Treasury’s will decline, interest rates will rise, and the cost of servicing the debt will explode.  Even a modest 1 per cent interest rate increase, for example,  would wipe out all the deficit reduction included in last year’s Budget Control Act.  In other words, all the pain envisaged in the fiscal cliff would provide no deficit relief at all.
In reality, if market forces move against U.S. Treasury’s they would not impose a 1 per cent cost. Interest rates would increase more likely to 5 or 6 per cent per annum on the initial tranche. Such penalties would require massive and immediate cuts to Social Security Medicare and National defense and most likely would take Medicaid right off the federal accounts. Even the Congressional Budget Office projects that, under the most likely scenario, in 30 years from now,  net interest payments on the U.S. national debt will amount to $3.8 trillion per annum in real 2012 dollars. That is more than total government spending in 2011."
--http://charlesrowley.wordpress.com/2012/11/26/when-market-forces-bring-down-the-american-eagle/