Goldman Sachs has just put out a warning about a full US-China financial decoupling which would wipe out $2.5 trillion.
US investors might be forced to sell $800 billion in Chinese stocks, while China could liquidate $1.7 trillion in US assets, including Treasuries and equities.
Boom.
Ultimately, what happens when investors around the world refuse to buy US government debt? Interest rates have to go up to entice those investors to buy US government debt. And if Interests rates don't go down? Investors will punish the market by pulling more money out.
No amount of interest offered on long bonds is going to tempt investors 🙄