`nobody is going to be lending the US money if we don’t pay our debt,`
1) The Fed can loan money by simply creating new dollars and purchasing treasury bills. This has been happening for a long time, T-Bills do first get offered to private institutions but the Fed backstops all auctions.
2) There is literally no way for the US Gov to go involuntarily bankcrupt because of 1). It is the sole manufacturer of US dollars and can always create more.
1) The Fed can loan money by simply creating new dollars and purchasing treasury bills. This has been happening for a long time, T-Bills do first get offered to private institutions but the Fed backstops all auctions.
2) There is literally no way for the US Gov to go involuntarily bankcrupt because of 1). It is the sole manufacturer of US dollars and can always create more.