Soft power is the smallest benefit. You're leaving out a large part of the equation, which is that countries can trade with each other in the reserve currency,

Soft power is the smallest benefit. You're leaving out a large part of the equation, which is that countries can trade with each other in the reserve currency, which becomes a neutral medium of exchange with respect to the parties. The value of holding US treasuries currently is that everyone will accept them. By having the world's reserve currency, the US becomes the owner of the world marketplace. It's not just about trade with the US. I export to the US, get USD which I convert to US treasuries, and now I have near frictionless trades with everyone else in the world. One huge impact of this over the last 50 years is that the world is effectively lending the US liquidity at the lowest possible interest rate, which the US then extends as credit to American businesses, universities, etc., fueling a boom in industry, commerce and academia. Another big impact is that holders of US treasuries are strongly incentivized to support and protect America, because as America falls, so does the value of those holdings. Before China declares war on the US, it looks at its huge pile of treasuries that will become worthless at the first shot, and says "maybe not". It also allows the US to affect other countries through its monetary policy--another incentive for others to play nice with the US. It's kind of boggling how little this is understood, how much short and long-term prosperity the US has created for itself by doing this.