Dollar hegemony, on the other hand, works by it being a global reserve currency that foreign central banks who have accumulated dollars from their exports have nowhere else to spend the dollars, so they have to buy US treasuries as savings (to earn a small % of interests). In other words, US treasuries serve as a “sink” to recycle spent dollars back to US shores, allowing the US to spend an unlimited amount of money overseas.
But they have to pay interest, so its not really unlimited money
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