US economic policy could fail due to a decline in the dollar's reserve currency role

The economic policy conducted in the United States (an expansionary fiscal policy at full employment) will cause a n increase in the US external deficit, which will not be fixed by protectionism. The danger f or the United States could be that the dollar's reserve currency role declines (e.g. due to uncertainty regarding the economic and foreign affairs policies conducted in the United States, and because of certain countries' reaction to US hostility). The United States' growing external deficit (growing external debt) would in that case become difficult to finance, leading to either a sharp increase in interest rates or a sharp depreciation of the dollar, and in either case a severe decline in US domestic demand.