No, it's not the United States's military dominance that makes American debt a s... | Hacker News

Hacker Newsnew | past | comments | ask | show | jobs | submit

		rthomas6 9 months ago \| parent \| context \| favorite \| on: Moody’s strips U.S. of triple-A credit rating No, it's not the United States's military dominance that makes American debt a safe bet. It's that the Dollar is the worlds reserve currency. Other countries need to transact regularly in dollars even if the United States is not involved in the transaction. And the only way for other countries to get those dollars is through 1. A trade surplus with the US, or 2. Buying US bonds.

transcriptase 9 months ago [–]

It’s the world’s reserve currency because default and seizure is extremely unlikely. Why do you suppose seizure is extremely unlikely?

Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact