Didn't say there wasn't. What I am suggesting is that it will likely NOT be used. Imagine the upheaval as $5 Trillion of Federal public debt is refinanced at a lower interest rate. First, the "call risk" on bonds skyrockets making bonds fall in price, and become less attractive investments. Second, incomes previously derived from the existing interest rates face decline in the face of rising consumer prices (related purchasing power decreases.) Third, it only saves 120B per year. That's well within the threshold of tolerance for long term deficit spending.
In short the political pressures to leave the debt in place would be SUBSTANTIAL.
Again you're confusing what COULD happen with with will likely happen.
Hell, DImp-Dimp, you're only projecting what YOU thing might happen. Then again what you assume won't happen could very well happen. In fact, it seems more likely to me.
ASfter all, your primary scenario is based on substantial price increases and disposable personal income falling which are very unlikely to happen. With the removal of ER payroll taxes, consumption costs, and the well-known embedded tax costs that also artificially boost prices it is eminently likely that prices will decline as most people can understand. With those things removed and more money in taxpayers' pockets the outcome outlined by Kellis91789 is far more likely than yours.
And there's certainly no reason for an "upheavel" in bond or any other prices since there will be many months of leeway as the economy adapts to the FairTax ahead of time.