The death of the US dollar is not blamed on the Federal Reserve printing trillions of new fiat currency during the years of Quantitative Easing in order to bail out the difficulties of the 5 large banks. It is not blamed on the thoughtless US sanctions imposed on Russia, Iran, and other countries, the only effect of which is to encourage countries to abandon the dollar based system, thus causing a drop in the demand for dollars and US Treasury debt.
It is not blamed on the thoughtless US sanctions imposed on Russia, Iran, and other countries, the only effect of which is to encourage countries to abandon the dollar based system, thus causing a drop in the demand for dollars and US Treasury debt.
When countries cease settling their international balance of payments accounts in dollars, as Russia, China, Iran and other countries are doing, demand for Treasury debt drops.
To be completely clear, the ONLY reason the US dollar is in danger of a large reduction in its value, is that Biden's sanctions are driving countries away from the dollar.
US debt can become a problem only from the abandonment of the dollar as world money.
As US debt is denominated in US dollars, the Federal Reserve can always pay off the US debt no matter how large it is by printing money and buying the bonds.
The problem is whereas the Fed can print dollars to meet any debt payments, it cannot print foreign currencies with which to buy dollars in foreign exchange markets.
When US Treasury debt is redeemed, the debt holders receive dollars.
https://www.paulcraigroberts.org/2024/04/23/the-real-debt-problem/
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