Can the U.S. Avoid a Dangerous Debt Spiral?

TL;DR

The U.S. Treasury faced reluctant investors and had to offer a 5.2% interest rate on 30-year bonds, the highest in two decades.
Rising government debt is driving up interest rates, creating a spiral where higher rates increase borrowing costs, leading to more debt.
The Treasury's plan to buy back a small amount of long-term bonds was a "drop in the ocean" and failed to reassure investors.
Fitch Ratings flagged deteriorating debt-to-GDP levels and a lack of policymaking coherence as risks for a potential U.S. credit downgrade.
Elevated interest rates increase borrowing costs for businesses and families, hindering economic growth, investment, and job creation.
U.S. interest costs are projected to reach $1 trillion by 2026 and could consume a significant portion of federal tax revenue within decades.
Congress's assumption that interest rates will remain low despite unprecedented borrowing is challenged by current market trends.
A debt and interest-rate spiral involves increasing debt, higher borrowing costs, further debt accumulation, and eventually, financial markets demanding punitive rates due to default fears.
Potential U.S. responses include monetizing the debt by pressuring the Federal Reserve to buy bonds, which could lead to inflation and devalue the dollar.
Avoiding a spiral requires addressing underlying deficits through fiscal reforms, which would involve painful tax increases and spending cuts.

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