Posted 4/14/2019 07:56 (#7438369 - in reply to #7438247) Subject: We already did that
We basically did that when the FED funds were almost zero for over 5 years there, and below the CPI. Many maturities of treasuries were yielding less than CPI during this period and we greatly expanded the so called "debt" and had no problem selling those products with rates below the inflation rate.
The foreign economies that own US treasuries do so because it keeps their currencies lower in value than they otherwise would be and gives them a competitive advantage in international trade. Holding large amounts of US treasuries also gives them the ability to manipulate their currency if they feel the need to. I'm sure they would like the highest yield they could get but that is a secondary concern and not the driving force for owning US treasuries.