Earlier quoted context omitted.
> Why should we be borrowing all this money from foreigners when we’re a rich country? The crazy thing is, most of the money that the US borrows from is from their own citizens... not foreigners. I don't know why everyone presumes that US debt is mostly or entirely owed to other countries. It isn't.
Okay, but then doesn’t that undermine your point about the importance of the US being the world’s reserve currency? What does that matter if most of our debt is to ourselves anyway? Japan runs huge structural deficits and most is held by its own citizens.
Being a reserve currency increases currency stability.
Being stable makes the cost of all loans, including domestic loans, cheaper.
Being stable also increases the use of a currency for reserve purposes.