Rather than the US net debt threatening the dollar's role, it is the dollar's global role that has driven the deficit: US financial assets — treasuries plus private securitized assets — are uniquely attractive due to the economy's size, perceived military and legal safety, and the creativity of US financial markets, which sustains the dollar's reserve role and skews the trade deficit toward the US.
causalpending
Speaker
Joseph GagnonEvidence Quote
“we think it's the dollar's global role that has basically driven this process.”
Created: 6/18/2026, 1:57:48 PM
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