“if bonds cannot be issued because of debt ceiling, the Fed cannot do the bailout.”
There is a hidden assumption there.
Let us put in out in the open and inspect it.
The assumption is that the US Treasury must obey the law.
It is only valid is there is someone who will punish those officials if they break the law.
See the flaw?
I doubt anyone at Treasury would risk it. That’s a very long statute of limitations. Risking a GOP president and DoJ.
The issue is not Treasury obeying the law. It would be all individuals involved.