To be clear, because the reserve currency countries that are running big deficits have their deficits and debts denominated in their own currencies, their ability to print the money to service the debts transfers the risks from them as debtors to those who are holding the debt as creditors. So, the big risk is not that those big debtors will default; it is that creditors will hold assets that will be devalued—i.e., that the returns from holding debt assets will be less than the inflation rate.
