Maybe I'm confused, but It's my impression that you would rather spend money in a deflationary environment. In a deflationary environment, your money has more purchasing power. Think of gas. You were able to buy gas for less money last week than you could this week...
The higher gas price is an inflationary force as I understand it. The increase in the money supply due to artificially low interest rates is causing the price of gas to go up.
If interest rates go up by n%, the available credit available credit goes down. Suppose you were going to take out a 20k car loan at x% and now the interest rate for that loan goes up. You monthly payment was going to be $300 per month, and that's the most you could afford. Now the interest rate...