Status Updates From Our Dollar, Your Problem: A...

Macron - Europe-wide defense bond

However, because so much of the world’s financial markets is dollar based, U.S. Treasury debt is particularly useful. In a seminal paper a decade ago, Annette Vissing-Jorgensen and Arvind Krishnamurthy estimated the convenience yield to be about half a percent, an order of magnitude we will see more than once in this chapter.2

SDR - more transparent (!)

The U.K. government’s default on its debts
to the U.S. government in 1931 was unquestionably an important step on the
way to the passing of the baton from the pound sterling to the dollar.

In the eurozone, however, there is no unified fiscal authority. As a result, the cost of any reduction in the value of debt that the ECB holds, either through outright default or through high inflation, is spread around the eurozone’s membership, in proportion to their share in the central bank. The gains, however, are concentrated on the country that issued the debt, which gets a lower interest rate.