Yes we repay the borrowed money... by borrowing more money. If a business borrows money from new investors to pay the older ones, they call that a Ponzi Scheme. Here we call it Government.
So no it's not the end of the world. But on our time scale, it could still be a disaster of unprecedented proportions that we will have to deal with through our lifetimes.
"Spock, did you see the looks on their faces?" "Yes, Captain, a sort of vacant contentment."