Using the idea of loanable funds can you give me a brief summay of the
worries many have over the probability of increased deficits
increasing interest rates for business and consumer borrowers.

The amount of loanable money can be increased by various stategies,
one of which is the tax cut that will likely occur soon, so the effect
of the tax cut could go either way short term and long term. With rare
exceptions, tax cuts have been win, win, win short term, but it is
hard to imagine how excessive deficits can be healthy long term. Long
term changes are driven by a variety of factors besides the tax rate
so we may never be sure what is wise long term.   Neil

Thanks Neil for the clarifying this for me. It has helped me to
understand it better.