Let's step back and ignore what the market is telling you and also put aside our theories for a second and think: why on Earth would the US all of a sudden not be able to tax its citizens and pay interest on its debt? That is the fundamental question. We have a powerful military to protect us, we have one of the best economies in the world and we have the best legal system in the world. There are no rational or logical reasons to think that the US is on the decline or the dollar is doomed or anything close to that. And looking at interest rates and FX strength you can see the world does agree with that statement.
I think this is were it becomes interesting.