I’ll be clearer. The failure mode that you’re talking about, where debt ratios are so high that a country isn’t able to service its debt, is economically speaking impossible. This isn’t “too big to fail”, it’s the system working as intended.

I'm not sure why you think that's what I'm talking about, because I never brought that up. In fact I agree with that point. The apparatus will never report a failure because it has an incentive not to. The whole system is built and described in a way to make failure seem impossible because confidence is necessary for it to work. But when numbers and reality don't match, reality wins.

That’s not what I said at all! There’s no failure being hidden, public deficits are a normal feature of fiat currencies.

Again, I'm not making any comment on the deficit. Literally never brought it up. I'm talking about people losing confidence in the dollar.