(1) if the military might is being fed bugs and paid fiat that doesn’t cover basic necessities (food, shelter, energy) because they are too expensive then they aren’t going to be motivated to do anything of quality. That obviously extends to every single walk of life. Read Atlas Shrugged (or at least The Mandible) for a good narrative around how this happens in a modern society.

(2) fiat currently is the rails for global medium of exchange and unit of account, yes. But bitcoin NGU does not need to be measured by fiat to have NGU. If someone was willing to part with 2 pizzas in exchange for 10,000 bitcoin in 2010 and now 10,000 bitcoin will buy a Caribbean Island citadel then NGU without fiat serving as a medium of exchange. NGU means purchasing power in terms of real goods and services. Fiat has been a useful technology to make that transaction quickly.

(3) Even a 10% 5-year treasury rate against bitcoin’s annual appreciation (50+%) over a 4-year cycle would get blown up by the arbitrage trade. Yes, credit exists on a bitcoin standard but the expected yield is more in line with the appreciation of the asset…we’re nowhere near that in the current fiat world. (Aside: that’s the Michael Saylor trade…if everyone did it, it would blow up modern credit markets.)