Note that these graphs are US centric.
I'm not sure I agree with all of this. While increasing interest rates will increase debt and deficit, I I wonder it will still lower demand and inflation. My thinking here is that more federal debt here will not increase demand for goods because the debt is not being used to purchase things (instead it's just creating extra debt) like it would be with a normal government deficit where they are creating infrastructure programs or giving money to people.
Regardless of this, I think my view remains that this debt is never getting paid back without massive inflation above interest rates or monetisation of the debt.
This is interesting on housing.