As the U.S. wavers under the weight of dire economic, social and health crises, historic measures introduced to stabilize the country have increased general government debt to 130% of gross domestic product. Most of the newly issued government bonds were purchased by the Federal Reserve, which has significantly inflated its balance sheet. With the Fed holding a growing share of its own outstanding Treasuries, an erosion of trust in the international role of the dollar could be heralded, says Gunther Schnabl.
