Financial Times takes a look at sovereign debt and concludes:
The US does look vulnerable, but given that it has a reserve currency, it can use this to manage its funding problems. Its external debt is largely dollar denominated (and thus again allows it to ‘inflate’ its way out of its problems). We therefore believe it is inappropriate to rank the US against all other countries – and we show the US as a memo item at the bottom of our table.
Thank you, petrodollar.
