Status of reserve currency
The status of US dollar as the main international reserve currency, after WWII, has been and is today even more the most important single factor behind the great power game and the changes in the polarity of the international system.
The reserve currency status has enabled the US to pile up a towering mountain of federal debt of over $27 trillion (in late 2020) — without having to worry about its own financial stability or repayment, at least until now. The US debt-to-GDP (21,4 trillion $ in 2019) ratio is amounting up to 130%, bringing the US in “banana-state category”.
This “limitless running into debt” has enabled the US nearly “limitless military spending” as well as setting different arbitrary sanctions worldwide, according to its political purposes. The US military budget is accounting for more than the combined next ten in the world and representing approx. 40% of the world total annually. Therefore, it is necessary to study in details this dollar status and its consequences.