After the US Dollar with Luke Gromen

https://youtu.be/OOW-oSruO80?t=4072

Luke's key point lands at about 1:08:27–1:08:33, where he says that instead of selling treasuries outright (which would draw attention from the American embassy), China can use them as collateral — and the American banks are happy to take it. He then lists what China gets in return: "I'll take Pereus. I'll take that oil field. I'll take that copper mine. I'll take all that gold." He then adds that this works because the incentives align on both sides — the Chinese want to understate their strength, the Americans want to overstate theirs, and the American banks are happy to accept dollar collateral without asking too many questions.

Aren't these things just legal fictions that only exist because/as long as the US government allows it?

Damn that’s actually a crazy thing to think about but makes perfect sense. Thanks for sharing