It's not just the fact that the Fed is buying crap. To me, that's old news. I don't think there's any currency in the world that can rival the dollar of a united U.S. Ultimately, the dollar is backed by the faith of the U.S. government to honor its debts, and nobody else comes close.
But...news that the Federal government is pitting states against each other, between public and private parties, and between state and federal government in its response to this national emergency I think is something we haven't seen. It's like chained Black Swan events. I don't think state governors will let this debacle go unanswered if they have any real authority.
If it threatens the Union, if people in Massachusetts or New York or California ask each other whether the people in Oklahoma or Georgia or Mississippi will stand by them during hard times and if the Union still makes sense, then investors might start asking whether the country will exist to service its debt in the future. A tipover event like that would immediately put on a stopper on debt renewal and the gravy train, at an absolute minimum.
That's a spiders-on-eyeballs hades-says-hi level of scary, but I wouldn't discount the significance of socio-economic or political effects on economic and financial stability, given how this biological risk wasn't priced into our economic or financial grand strategy.