By Paul Craig Roberts

Global Research, May 29, 2025

It seems forever that I have been trying to teach economists, the Treasury, the Federal Reserve, the financial journalists, the Republicans, and conservatives that as long as the dollar is the reserve currency America’s national debt will be held in the form of US Treasuries as reserves in the world’s central banks. As US debt rises, so does the reserves of the world’s central  banks, and everyone is happy.

The danger to US national debt is not its size. The danger is the weaponization of the dollar which threatens the continued acceptance of the dollar as reserve currency. Sanctions on countries and the seizure of the Russian central bank’s dollar reserves introduce real risk into holding reserves in US dollars.

What is threatening America’s ability to finance its debt are the US sanctions that have caused the rise of BRICS and the search for alternative payment methods to the US dollar.

Why this simple fact is too complicated for economists, financial journalists, politicians, conservatives, and Elon Musk to understand is beyond me. The US dollar has been the reserve currency for about 80 years.  For most of this time conservatives and David Stockman have predicted America’s imminent death by debt.

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https://www.globalresearch.ca/problem-weaponization-dollar-not-us-national-debt/5888841