What do you mean "consumed" ? Government spending is only hard-limited by keeping up this Federal Reserve dog and pony show that seeks to handicap the government's own monetary sovereignty. What you're actually talking about is the risk-free interest rate given out to entities that park their money in Treasuries, which is itself set by the government!
This is most certainly not to say that the government could just create an unlimited amount of money and expect there to be no repercussions! Rather the overall point is that it's specious to analyze a government budget in terms of "debt", especially while giving a pass to all of the monetary creation that happens outside of the legislative (loans issued/bought by the Fed).
This is most certainly not to say that the government could just create an unlimited amount of money and expect there to be no repercussions! Rather the overall point is that it's specious to analyze a government budget in terms of "debt", especially while giving a pass to all of the monetary creation that happens outside of the legislative (loans issued/bought by the Fed).