What could happen if some international financial transactions, like oil, become denominated in assets other than US dollars, and Federal Reserve Note supplies exceed demand?

Inflation is one form of taxation that can be imposed without legislation

 

Milton Friedman

 

If the US government utilizes deficit spending and monetary inflation to stimulate economic growth, should inflation rise even faster in countries with currency pegs who have to print even more money to keep up with the falling value of the US dollar?

 

Ponzi finance units must increase its outstanding debt

 in order to meet its financial obligations.

 

 A transition occurs over the course of an expansion,

as increasingly risky positions are validated by the booming economy,

that renders the built in margins of error superfluous,

 encouraging adoption of riskier positions.

 

 Eventually, either financing costs rise

 or income comes in below expectations,

leading to defaults on payment commitments.

 

 Hyman Minsky

 

If the US dramatically increases Treasury debt issuance while the rest of the world’s purchasing needs fall if alternate currencies are utilized, should interest rates rise to attract investment?