But since then the other countries learned that the US government could weaponize their USD holdings if they don't align. Central banks started accumulating gold to counter this.
Also, debt market is not the same as it was 5 years ago, Japan now has inflation (and they hold the biggest bag of US debt).
To add to this, USD lost 10% of its value this 2025 according to the DXY index. To be fair, it pretty much went to what it was worth before 2022, but the Fed has to be careful anyway.
Many things happened since 2020. It's almost 2026.
However, it only owns 3% of US debt; they are the largest non-US holder, but still a marginal holder. Basically, they deseated China for that spot of "Biggest But Still Small US 'Lender'". Both together are dwarfed by pensions, 401ks, and other US buyers and institutions.
https://www.visualcapitalist.com/charted-heres-who-owns-u-s-...
The hard part is reigning that spending in during non-crash years (see the uproar over removing the temporary COVID subsidies) in a way that is not political suicide. At the Federal level, there is zero incentive to not run a deficit.
Also, debt market is not the same as it was 5 years ago, Japan now has inflation (and they hold the biggest bag of US debt).
To add to this, USD lost 10% of its value this 2025 according to the DXY index. To be fair, it pretty much went to what it was worth before 2022, but the Fed has to be careful anyway.
Many things happened since 2020. It's almost 2026.