It is really even more than that because of the depth of the US bond market.
Nation states need to be able to make huge transactions without any one else holding the currency feeling it. That is what makes the reserve currency the reserve currency.
That can't be done without a massively liquid bond market and no one else is even close to the US.
Then the network of military bases and military power is just another layer on top of the US bond market.
Then on top of that the top competitor has capital controls.
Nation states need to be able to make huge transactions without any one else holding the currency feeling it. That is what makes the reserve currency the reserve currency.
That can't be done without a massively liquid bond market and no one else is even close to the US.
Then the network of military bases and military power is just another layer on top of the US bond market.
Then on top of that the top competitor has capital controls.