“However, the US Treasury does not have the cash to pay your principal. They will BORROW that money at the going interest rate of 10%+.”
I notice that the United States somehow survived when the Treasury was borrowing at 14.5% in 1982.
In fact from 1980 until 1986 Treasury was borrowing at over 10% every single year.
https://www.multpl.com/10-year-treasury-rate/table/by-year
Congress has the vote on whether or not the Treasury can retire debt. Quit deficit spending, let the Debt-GNP ratio decline.
“In fact from 1980 until 1986 Treasury was borrowing at over 10% every single year.”
The debt in 1980 was $908bil.
The debt in 2021 was over $29,000 bil.
Each year AT LEAST $1trillion matures and must be rolled over. Often it’s $2trillion. It’s not unusual for it to be $3 trillion. In this scenario interest rates absolutely matter.
Especially considering Congress will borrow the principal and even the interest payments, never paying down a dime.
https://www.thebalance.com/national-debt-by-year-compared-to-gdp-and-major-events-3306287
Anyone who thinks Congress will do jack about this is delusional.