The dollar is one of the main world currencies. The economies of different countries depend on it. However, today experts assess US foreign policy as aggressive, and America's trillion-dollar debts as unaffordable. For these reasons and the ensuing consequences, the US national currency should face an inevitable collapse. As well as the collapse of the national economy of those countries for which the dollar is the basis. However, not all so simple.
The American dollar, along with the American economy, has already experienced deep crises more than once. And until now, the US authorities have been successfully solving them.
Although during the Cold War, the USSR government officially considered the issue of a deliberate collapse of the national currency of its main enemy. After the dollar default in 1971 and the ensuing oil crisis in 1973, the US economy was on the brink. And the Soviet leadership at that time had all the real possibilities.
Perhaps, in those years, the dollar was close to its collapse as never before and as never after. Nevertheless, due to the great unpredictability of the consequences for the world, the CPSU Central Committee abandoned this idea.
Is the collapse of the dollar possible today?
Despite the huge debts of the United States, their national currency is currently the most stable currency in the world. The long peg of the dollar at the end of the 20th century to the gold standard, as well as the strong American economy, prompted many other countries of the world to stock up on dollar reserves instead of gold reserves. In addition, the American currency is actively used in foreign trade, and not only by America.
In this state of affairs, if the dollar collapses, it will inevitably lead to a strong blow to the economies of all states that use American money in their national economy. Even if all the branches of national production of these countries were steadily developing in an ascending order.
Of course, no one needs such disasters. Therefore, not only the United States is interested in the stability of the dollar, but also practically the entire business world. Because of this, a collapse of the dollar is possible only in the event of very strong shocks in America itself (wars, joint demands of creditor countries to return all debts, etc.). However, the likelihood of such situations at the moment is practically nonexistent.
Is the dollar eternal?
However, the future of the dollar is unlikely to be bright. He has too many competitors now. However, they will not lead to his instant, world-stunning collapse. Most likely, it will be a smooth sunset.
According to the experts of the World Bank, reflected in the report "Horizons of Global Development 2011 - Multipolar World: Global Economy", by 2025 the dollar will lose its leading position. Experts believe that the position of the American currency will be significantly shaken under the influence of the euro and the yuan.
Also, by 2025, more than half of the growth in world GDP will come from 6 leading developing countries - Brazil, Russia, India, China (the so-called BRIC countries), as well as South Korea and Indonesia. All of this will end American dominance in the global economy.
