[dgb23]

You're missing one important feedback loop in this system: That debt is subsidized by foreign institutions, which have been slowly pulling out as they recognize that the US has been consistently consuming beyond their means. Also almost every continent has been working on circumventing the USD as the primary exchange currency in some way or another.

This is reflected in the USD losing value at a higher pace, which means the debt cycle becomes unsustainable.

Hopefully it will gradually managed, but that requires a large amount of political will, tax hikes and budget cuts. Very hard to do fairly and different people have extremely conflicting views on who should get poorer, because that's exactly what cuts and hikes mean.

The current admin is trying to brute force a change, where they keep their cake and eat it too, but they are eroding international trust which just accelerates the issue.