Explain link between US Military and US$ Reserve currency?
Can someone please explain the link between having the world's strongest military force and
1. Low interest rates on Debt.
2. Currency as the global reserve currency
Thanks,
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I don't think military strength directly affects sovereign interest rates or global reserve status. The former is about supply/demand/inflation/default-risk and the latter has more to do with liquidity and depth of the UST market.
There is no link. The only big force still buying Treasuries is the Fed. Once they stop QE the US is in trouble (i.e. they never can so we will literally have QE4Ever).
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