you opinion is based on an assumption that money is finite. so to sell bounds, the bond interest must be high enough to cover the inflation and be attractive to the cash that's available.

when in actuality, it is a bit more complicated. for one... the Fed can always decide to screw the inflation and start QE again, turn on the printer and flooding market with 100 trillion dollars over night (by buying the bond), and set the overnight rate back to zero. and bank would be able to once again borrow short term money for next to nothing, and stay solvent, and none of the situation you describe would come true. The US can keep doing this for as long as dollar is accepted world wide, as the inflation / devaluation of Dollar will be aborted by the entire world, but US will reap all the benefits as long as we got military might that can uproot any government dare to say otherwise.