That’s not really how the financial system works. Debt is an investment in the economy, like you taking out a loan to buy a pizza shop. If your pizza shop generates more revenue than cost to service your debt, then the fact you have the debt doesn’t really matter does it? After all your own a pizza shop too, right. On the US side, the system fails once the economy fails - and then we have much bigger problems.

You’re looking only at the liabilities without checking what assets those liabilities are backed by, and what kind of new revenue those liabilities created. Debt isn’t burned money, it’s invested money at work in the economy. Out creating new revenue to service said debt.

Also, the value of a dollar isn’t driven by the federal balance sheet but rather demand for those dollars. When dollars enter the world, via fractional reserve borrowing, the new dollars are issued against new debt. The obligation to repay the dollar to the lender is what creates demand for dollars and gives them value.