A leading thesis in the macro space is that the general response to interest burden is for policy to naturally shift to financial repression, or using monetary

A leading thesis in the macro space is that the general response to interest burden is for policy to naturally shift to financial repression, or using monetary tools and regulations to suppress real interest rates and devalue the debt stock while dropping interest payments. Ex: after 2020 debt to GDP went down in real terms despite the massive increase in liquidity. Of course that just enables more deficit spending and shifts the world more towards a modern monetary policy model, where inflation is the limiting factor. It's a plausible view. Just as governments that can print their own money will not default, they will print to pay, they will also generally avoid going into a crushing crisis due to interest payment burden. It's politically easier to use the currency as an outlet. Interest rate payments are supposed to limit the extent of deficit spending (and government budgets getting squeezed by interest is arguably partly deflationary, in that it can spur deflationary crisis and bad real economic environments), but in practice increasing interest payments creates more of a phase shift where the system shifts to forced debt haircuts, and that flows in kind to extra pressure on the currency. Just look at the current environment where Fed independence is being breached like never before, with the aim of forcing interest rates down without consideration for data driven risk analysis...