They keep US debt because the government is forced to create it to cover trade deficits which is consequence of the dollar bearing the status of reserve currency. Simple math. Dollar is a victim of its status
Actually, USD now only based on trust since 1971 USD not anymore backed up by gold, the currency still uses in a global world because the US is superpower country, but some researcher say if digital money will replace flat money on the next decade like as Deutsche bank predicts 2030 it will occur where cryptocurrency will replaced flat currency
Yeah, USD determines financial conditions in the world = pace of global credit expansion, I guess this paves the way for equity markets too where the risk priced in is an ease of access to credit sources (i.e. borrowing costs)
I found out that even if the currency pair is not related to USD, EUR AUD for example, it is still somehow being affected by USD news. My position was suddenly reached stop loss in a few minutes. Why is that?