Treasury interest rates are substantially determined by the perceived reliability of the US govt and the odds of the US paying back its debts. If the US purpos

Treasury interest rates are substantially determined by the perceived reliability of the US govt and the odds of the US paying back its debts. If the US purposefully blows up its credibility then interest rates eventually go UP. The US Treasury rate being the "risk free rate" of capital isn't a magic law. It depends on prudence.