I'm trying to get my head around this issue and I'm hoping someone here can help. My understanding is that the US will attempt to sell trillions of dollars worth of bonds, but foreigners will demand higher interest rates for their money, thereby forcing up mortgage and business interest rates, thus sinking the US economy. They can try to avoid higher interest rates by printing but that will cause further loss of faith by foreign lenders who will reduce purchases of US bonds. Catch 22. Have I got that right and if so, how might things play out?
Also, if the US can't sell it's own debt will that choke off Australia's money supply and force up rates here?
All comments/education welcome.