Government Bonds as the Real Money

Trade agreements, like the petrol dollar system, are essential in facilitating trade by allowing people to trade freely without interference. The fiat monetary system functions through the treasury being the biggest market globally, with government bonds essentially representing the money. The growth of the bond market in the 19th century empowered governments by providing significant financing. Therefore, government bonds are the primary source of 'big boy money', differing from currency held by the general public. The size of the bond market determines financial power, leading countries like China to consider reducing their exposure to US government bonds since the 2008 financial crisis.