US Gov has to raise rates to sell bonds.

I doubt this will be reported upon seriously, literally though, it could be the start of tremendous inflationary pressures:

http://www.conservativeoutpost.com/us_treasury_forced_pay_higher_interest_bonds

And keep it should be kept in mind that Federal Governmental Budgetary projections are only going to increase the amount of bonds that must be sold in order to pay for all spending, and if the path of Monetization is chosen, Inflation will surge even faster, we cannot borrow nor print our way out of our current problems, the US simply must become more productive as well as curtailing borrowing or printing more phantom "money".

This is a part of the reason why I like Gold as a reliable store of value, you cannot inflate it down to worthlessness.,

 

Or must borrow whatever it needs to spend on non income producing programs.

It's insane, and anyone with a Grade "B" economics education can see what is going to happen, yet the hope is it won't, when inflation must occur as a sort of safety valve.