As long as the United States is willing, U.S. debt cannot default. However, if there are no restrictions, it will lead to inflation, dilute purchasing power, and reduce the credibility of the dollar. Under limited issuance, various forces gain more benefits through negotiation.

In response to the COVID-19 pandemic, the U.S. implemented unlimited quantitative easing (QE), and the federal government actively increased leverage to avoid excessive economic contraction. Now, as inflation is being controlled and economic resilience is evident, the U.S. is actually not in major trouble. By the way, it's worth mentioning that U.S. tax revenue has also seen significant growth.

U.S. debt appears large with high interest, but 70% of U.S. debt is self-circulated by Americans. A lot of the federal government's debt is “borrowed from the left hand to lend to the right hand,” for example, the Social Security Trust Fund holds a large amount of U.S. debt. And of the other 30% that is not within the U.S. itself, it may seem to be in foreign hands, but it actually circulates back into the U.S. economic system through various means (such as the U.S. stock market), which is not understood by those who do not know how the financial system operates.

For instance, in the past two years, when U.S. debt interest was high, many people only saw the federal government's high-interest expenditure, but they did not see that a lot of money returned to the hands of Americans, providing them with more disposable income for consumption. Of course, this has also contributed to inflation not reaching the Federal Reserve's expectations.