Rather than selling off real assets, the answer is for the executive to create new money themselves ("mint the coin") rather than continuing to be beholden to the Federal Reserve. As we saw with this last spate of pandemic price inflation, the Federal Reserve's technocratic mandate means they will have to adjust and take money out of circulation to compensate.
1. Executive branch mints coins
2. Coins are deposited
3. Functionally this raises the debt ceiling, albeit in a roundabout manner
4. Fed. Reserve tightens monetary policy to compensate for increased circulation of USD
5. Banks are less able to lend cash on a credit basis to private enterprise, since all banks are dependent on Fed. Reserve for cash to back such lending
If it continues long enough wouldn't this eventually mean that the only entity with any credit would be the Federal Government? I'd suspect a weird commercial futures swap market would pop up in lieu of traditional credit lines.
I'm assuming this is a continuous loop. So over time wouldn't interest rates tend to infinity? Or maybe not, because raising interest rates at some point would be of no utility. If no one is using credit, raising rates doesn't actually change anything.
Interest rates and the ability to issue credit are mostly orthogonal concepts (interest rates do affect the real and perceived abilities of a debtor to pay back a loan, which does affect creditworthiness).
The sheer majority of "money" in our economy is actually credit/debt. Your bank account balance doesn't indicate a physical pile of money somewhere, rather it's debt the bank owes you. They in turn do things like buy US treasuries which are debt the government owes them, or loan it out as credit card balances which are debt that other consumers owe them. A dollar in your bank account contributes to your own sense of purchasing power AND (for example) the credit card user's purchasing power. Increasing interest rates makes debt less desirable to have, thus decreasing the money supply.
I don't know what you're saying about rates tending towards infinity?