The US is different than Japan because actually, they don't even theoretically need any 'real' buyers of their bonds, as the FED is the biggest end-game buyer (gov. extension).
Before that, they would likely force their commercial banks to buy more bonds, and in the last step, the FED just prints money and finances their bulging fiscal deficits entirely.
They will continue to serve it until they can't anymore and then will just collapse.
That point is when the FEDs print enough dollars into circulation to cause hyperinflation.
(Way above the external 'demand' for them, so the RoW can't 'absorb' their inflation anymore entirely).
That would just pour gasoline over already the pretty fiery internal socio-political situation, and then the US would disintegrate.
Where is the guarantee that the US has to exist forever? Nothing exists forever.
Yeah, they can likely do a few symbolic 0.25 or 0.50 rate cuts,
but they fundamentally can't defeat inflation anymore, judging by the data and common sense.
So, that means that their interest rates will always need to stay relatively high. They need to balance economic slowdown in activity and inflation concerns (
stagflation).
