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Okay, but then doesn’t that undermine your point about the importance of the US being the world’s reserve currency? What does that matter if most of our debt is to ourselves anyway?

Japan runs huge structural deficits and most is held by its own citizens.




Reserve currencies are important for international trade, not just international loans.

Being a reserve currency increases currency stability.

Being stable makes the cost of all loans, including domestic loans, cheaper.

Being stable also increases the use of a currency for reserve purposes.




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