> to be invested in the US
to invest in US (i.e. to buy a piece of US) one has to sell something to US to get dollars while not buying US products in return, ie. an US trade deficit is needed. And that at the same time while US is introducing tariffs to reduce the said trace deficit.
You assume that the current admin is not simply asking for gifts.
We live in an economy that is highly virtualized, where the same unit of currency can be used several times simultaneously to borrow, lend, re-borrow, etc. so I'm not sure it's that simple.
If the US gets invested with such "virtual" ("out-of-thin-air", newly issued, etc.) dollars i guess it would be even worse as it would only inflate prices in US while not doing anything else.
Maybe?
What we're discussing is clearly beyond my ability to grasp (macro-)economics.
Being the biggest reserve currency has a little-discussed perk where the reserves lower the average velocity of money, which blunts the inflationary pressure of money-printing. Eroding trust in the US will deplete these deep pools of USD and will result in a more direct linkage with domestic inflation in the future.
It is inflating prices but also doing a lot more contrary to nothing.