The country that issues the global reserve currency cannot be in conflict with the rest of the world

This idea obviously applies to the case of the United States today . There are both economic and political dimensions to its conflict with the rest of the world: First, protectionism is incompatible with the United States’ status as the supplier of the world’s reserve currency. The country that offers the global reserve currency must accept high variability in its international capital flows, and therefore , correlatively , high variability and normally a structural current account deficit. Protectionism, meanwhile, seeks to obtain a stable and balanced current account; Second, the country that offers the global reserve currency must inspire confidence so that other countries can buy its debt without difficulty. If it enters into conflict with other countries, they will be reluctant to buy its debt, for example out of fear of their assets being blocked, or simply out of retaliation. Since 2013, on average, China, OPEC countries, Russia and Japan (except recently) have no longer bought US Treasuries.