Keeping the US afloat

They say that if you owe the bank $1,000 you cannot repay, you are in trouble; but if you owe the bank $1 billion and you cannot repay, the bank is in trouble.

Think of the rest of the world’s central banks who hold dollar reserves as the bank and the US as the creditor who is in danger of defaulting. It puts the US in a very interesting position — it can take a lot of folks down if it starts to drown. The rest have a very good incentive to keep the US afloat.
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