Government Bonds as Real Money

Government bonds are considered the real money, with dollars essentially representing government bonds. The size of the bond market plays a crucial role in determining the financial power, as shown by Chinese actions following the 2008 financial crisis. Despite concerns raised by various countries about holding US government bonds, they continue to maintain significant holdings. Even amidst deteriorating global relationships, countries persist in holding government bonds, suggesting factors beyond geopolitics and oil drive these decisions.