> I, a foreign entity, have sold something to an american and now have 10 dollars and zero treasuries.
Or you sold something to a non-American entity in a dollar-based market, eg. oil. The dollars do come from America to begin with, but once they get "out there" they work as a medium of exchange for whoever wants to use them for that purpose.
Interesting - The petroyuan was not on my radar at all.
https://ipr.blogs.ie.edu/2025/06/27/geopolitics-of-oil-how-c...: This article explores case studies such as Russia, Iran, and Venezuela, illustrating how the petroyuan has been implemented to bypass sanctions and reduce dependence on US financial systems.
It's ironic, isn't it? After going to war so many times to protect the petrodollar, the US deleted the petrodollar itself.
Which is why the US historically bombed any country that sold oil for other currencies, but now china is negotiating the petroyuan and it's working.