Your statement is not totally correct. I did not say it would immediately increase interest to the US.
I wasn't accusing you of saying that. It is part of the rhetoric coming from those who support perpetual deficit spending.
The interest, however, is not 'fixed'.
The average maturity of US debt now stands at a bit over 5 years, with maturities spread from a few months to 30 years or more of fixed interest. Some interest increase will will occur over a very short period of time as the shortest-term debt would be forced to refinanced at higher rates.
The key word there is 'refinanced'. I am proposing the budget be balanced. With a budget in balance, there will be no need for refinancing. A 5-year bond, 7½-year bond, 20-year bond, etc., will be retired when it matures. The cost of retirement is included in the budget. So yes, the rate for all existing Treasury bonds is fixed.
It is only when the bond becomes due that the government chooses to re-borrow the money at the new 'current' rate. Again, if the budget is in balance, there will be no re-borrowing, thus no exposure to rising interest rates.
Over time, 100% of the debt will see increased interest so will be a burgeoning burden on the US budget to service that debt.
Only if Congress refuses to balance the budget, choosing instead on borrowing more money to retire due debts.
The best way to approach to increase in interest for long term objectives within the federal budget is of course as you suggest to cease new borrowing. It is also best in the face of having any long term debt to increase maturities to well beyond 5 years to 10, 20 ot 30 years as well. Some added interest will occur over short time but will be much lower over long times in an inflationary, rising-interest rate period such as we certainly will have.
True. The biggest cause for rising interest rates is the demand to borrow money. Once the $2+ trillion annual demand of the federal government is removed from that equation, the price (interest) of borrowing will adjust accordingly. But if government chooses instead to continue expanding the money supply (á la the Weimar Republic), then all bets are off.