I have lumped in gov and FED into the same pot to simplify here since the actual mechanics of the collapse will be hard for me to predict anyway. I know it's more complicated than that, that banks actually create dollars based on loans at a ratio of 1:9 (or so I heard). It's my impression that if the FED has to pivot and ease interest rates on economic contraction that it will lose control of the economic incentives to keep the dollar in use abroad to prop up the power of USD as world reserve.

The incentive world wide is still to pile into dollars as the debt of other nations is high in dollars which need to be purchased to pay off debt. With the emergence of other financial coalitions like BRIC's, I think eventually the dollar will fall out of favor (in use abroad). Leaks like crypto and new social/political alliances keep undermining the power of the USD empire.