“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.
“Especially considering Congress will borrow the principal and even the interest payments, never paying down a dime.”
Who told you that’s what is going on?
Federal Outlays: Interest as Percent of Gross Domestic Product (interest on Treasury debt)
https://fred.stlouisfed.org/series/FYOIGDA188S
1980: 1.84%
2021: 1.53%
Federal Receipts as Percent of Gross Domestic Product (federal taxes)
https://fred.stlouisfed.org/series/FYFRGDA188S
1980: 18%
2021: 17.6%
Federal Net Interest Costs: A Primer
https://www.cbo.gov/publication/56910
“In fiscal year 2020, net outlays for interest totaled $345 billion, equal to 1.6 percent of GDP and 5.3 percent of total federal spending.”