So we know that the USA can only avoid paying their debt because the USD is the world reserve currency, but once they actually have to pay it, it’s going to be hell.
How is China going to deal with their own debt? Because it seems like they have a lot to pay back.
It can if they spend enough of it without taxing any of it back out. However, the relationship between the amount of injected money in the economy and inflation is not as inevitable, mechanical, nor 1:1 as neoclassical economists claim. Finding the Money explains this a bit.
Another common trope is “hyperinflation,” which the PEGS Institute also dispels: What Caused Hyperinflation In Weimar, Zimbabwe And Venezuela?