I think the fact the US dollar is a reserve currency has a little more to do with confidence than the other factors Krugman mentions. The US is basically bankin

I think the fact the US dollar is a reserve currency has a little more to do with confidence than the other factors Krugman mentions. The US is basically banking on the idea that they can debase their currency to buy their own debt (http://bit.ly/78TtQc http://bit.ly/78TtQc). Faking demand keeps the interest rates for their bonds lower and there is the presumption that the US dollar won't collapse because other nations are forced to buy it for their reserves.