Dave is pointing out the relationship between the United States paying its bills, the value of the U.S. dollar as the the world’s reserve currency, and how that all translates to life as we know it in the United States. What Dave does not point out is that the the U.S. dollar being the world’s reserve currency is a fundamental part of the United States Empire. It’s how we can punish other nations like Russia and Iran with “economic” sanctions or why cutting Russia off from SWIFT (which is the network that all banks, including national banks use to move money around) is in fact punishing.

While (like the Roman empire) we have built U.S. Armed forces bases all around the world, U.S. citizens, let alone the world, will not accept frequent military intervention, so the bases are mostly for show of power and rapid deployment capability. Consequently, the economic tools, like the reserve currency, are the tools of choice that we use to flex U.S. might.

I think most nations know exactly how the U.S. uses the reserve currency status to imposes its will upon them and that is why some of them are considering using something other than the dollar. The U.S. missing payment on its bills will provide good reason for the nations to pull the trigger and that could start the fall of the U.S. empire. If this happens we will find out quickly just how much our way of life has grown to depend on empire.

P.S. The United States is the only country in the world to have dropped nuclear weapons on another country. The fact that we were willing then to do such a thing and the fact that we use our economic muscle to enforce our empire makes us the bad guys for most of the world. The good life we enjoy keeps us from seeing our shadow self.