Part 8/10:
The United States' national debt hinges significantly on its relationship with global partners such as the European Union. As the world’s reserve currency, the dollar attracts international investors, enabling the U.S. government to spend at levels that would be unsustainable without this foreign support. A rift could undermine the dollar’s status, thereby destabilizing the financial equilibrium that supports U.S. military spending.
7. Sanctions Leverage
The unique position of the U.S. dollar as the default global currency provides Washington with substantial leverage in implementing sanctions against adversaries. A deterioration of U.S.-European relations could inhibit the ability to coordinate sanctions, thereby weakening the impact of U.S. foreign policy initiatives.