If US debt-to-GDP is such a problem, why aren’t US Treasury rates surging and other fiat currencies surging relative to the dollar?

Because the FED buys it suppressing the free- market to speak! That will translate to inflation. 

Least worst option. If your house is dirty and all other houses in the neighborhood are even dirtier, that doesn’t mean that your house is clean.

🇧🇷🇺🇸-  Book: Making Things Think: https://holloway.com/mtt. Investor in Wander, Carry, Footprint, Merkle Manufactory (Farcaster), Dynamic, Paragraph.

But why aren’t sophisticated large scale pools of capital betting against that?

Sorry, I didn’t understand your question. Betting that inflation will go up?

Betting against the USD, debt to gdp, cost of US borrowing will materially increase?

Druckenmiller is doing so. He is one of the best in the game. Not sure about what others like him are doing