As it turns out, when every country holds US dollars for use in global finance, it makes it very easy for them to park US dollars in American financial assets
Where else would they park it? The stock market is being automatically pumped by 401k auto purchases and similar investment strategies that amount to basically a tax with lipstick to subsidize the market. I don’t think any other nation is pumping their own assets to this scale. Maybe china but they don’t exactly let in outsiders to milk a good cash cow I wouldn’t think.
Also, the primacy of the American banking system allows the US to use it as a cudgel against foreign countries to make them do do all sorts of things. If some other currency is the global reserve, we lose a fair bit of soft power.
There are a lot of reasons we like being in the position we’re in, and I don’t think we know how bad losing it will be, if we do, but I think it’s unlikely to be positive. (Clearly our economists have largely agreed or we’d have gotten here sooner.)
