At the end of the day, the Japanese market is huge and people want access to it. Same thing goes for the US.

If the private market doesn’t want bonds, the central bank can purchase them. That’s not inflationary. What is inflationary is how the government then spends that money, but that’s true for any government spending, regardless of how it was financed. Either way, the debt ratios is literally meaningless.

1. Nobody is losing confidence in the US over debt ratios. Japan’s debt ratio is over 300%, and they’ve had no issues with financing their spending or capital flight. This is a myth that has been proven false.

2. If the private market doesn’t want to purchase bonds, the central bank can do it. Either way, there is never a need to default on debt owed in your sovereign currency. This will never happen. The risk here is inflation, but that risk is always present, regardless of how spending is financed.