PARIS/AMSTERDAM – For decades, the United States has enjoyed an unparalleled advantage in global finance, thanks to the dollar’s status as the world’s leading reserve currency. By running trade surpluses with the US, countries accumulated large dollar reserves, which they eagerly and overwhelmingly invested in US Treasuries. This constant recycling of global savings has enabled the US to finance persistent federal budget deficits – 6.4% of GDP in 2024 – without so much as a raised eyebrow from international investors.