The question of the dollar

From Bloomberg News:

The Treasury will likely borrow a record $2.5 trillion this fiscal year ending Sept. 30, almost triple the $892 billion in notes and bonds sold in fiscal 2008, according to Goldman Sachs Group Inc. The New York-based firm is one of the 16 primary dealers. This week, the Treasury is selling $187 billion of bills, notes and bonds.

We are tripling the rate we create debt? $187 billion last week? Using more debt to deal with a crisis of too much debt has even the relevant actors questioning themselves:

Treasury Department and Fed officials want to ensure there are enough firms bidding at auctions to keep borrowing costs low after the total number of dealers dropped last year to the lowest amount since the network was formalized in 1960. The Treasury Borrowing Advisory Committee, a market group that works with the central bank, wrote in a memo released Feb. 4 that more dealers would reduce “the possibility of an undersubscribed auction.”

What might a string of these "undersubscribed auctions" mean for the dollar?

Is the US government making a huge, unsure bet? It seems we are acting boldly with little relevant experience guiding us.