This is why the Fed is so obsessed with creating inflation: because it renders these gargantuan debt loads more serviceable. In simplest terms, the Fed must “inflate or die.” It will willingly sacrifice the economy, and Americans’ quality of life in order to stop the bond bubble from popping.Hundreds of billions of dollars later the economic "recovery" is still anemic, saving is for suckers, stock market gains are anything but an indicator of health, further Fed inflation is apparently inescapable, youth unemployment is sky high, and low-skill third-worlders are being imported to compete with Americans for the diminished number of jobs that there are. This is the genius of the Obama administration for all to see.
This is also why the Fed happily talks about stocks all the time; it’s a great distraction from the real story: the fact that the bond bubble is the single largest bubble in history and that when it bursts entire countries will go bust.
This is why the Fed NEEDS interest rates to be as low as possible… any slight jump in rates means that the US will rapidly spiral towards bankruptcy. Indeed, every 1% increase in interest rates means between $150-$175 billion more in interest payments on US debt per year.
Derivative markets exploding probably would harm some deserving speculators. I don't understand the ramifications of that at all. Maybe that would be a loss in some kind of "artificial" economy as Bemused Observer argues in the comments to the source article.
Savers are real enough and they've been driven into speculative stocks just to try to avoid the inroads of inflation. Pension funds are exposed because of ZIRP and consequent low return on investments in bonds. Kids go nowhere because government policy is about importing and coddling foreigners not creating or maintaining the fundamentals of a healthy economy. The unemployed are being hammered by competition from those foreigners and the rest of us suffer because of the presence of millions of unwanted foreigners who bring with them the pathologies of their home countries that impoverished them and otherwise degraded their lives. These don't strike me as interests that can be harmonized with smiles all round.
As I wrote recently, our country isn't being lifted up or protected. It's being sabotaged and mocked by a hostile government. Our own. And every other Western country is in the same boat.
 "The $100 Trillion Reason the Fed is Terrified of Deflation." By Phoenix Capital Research, Zero Hedge, 3/01/15.