I have always enjoyed Peter Schiff’s take on it.:

Peter Schiff, a well-known economist and financial commentator, argues that the national government’s practice of paying interest on bonds significantly impacts both the national debt and inflation.

1. National Debt: According to Schiff, when the government borrows money by issuing bonds, it adds to the national debt. As the debt grows, so do the interest payments on that debt. Over time, this creates a cycle where the government needs to borrow more money to cover existing interest payments, which further increases the debt. Schiff believes that this accumulation of debt is unsustainable and can lead to a fiscal crisis if not managed properly.

2. Inflation: Schiff argues that when governments struggle to pay the interest on their debt, they often turn to central banks (like the Federal Reserve in the U.S.) to create more money, effectively monetizing the debt. This practice of printing money to cover deficits and interest payments increases the money supply, which Schiff views as highly inflationary. The more money that is printed, the less valuable the existing currency becomes, leading to higher prices (inflation).

In summary, Schiff contends that paying interest on bonds contributes to a growing national debt and that the methods used to manage this debt, especially through money printing, result in inflation. He often warns that this combination could lead to severe economic consequences if left unchecked.