When will the dollar crash and what it will lead to
Everyone is talking about the collapse of the American dollar: in recent years, predictions about the inevitable collapse of the US dollar have been increasingly sounding.
The famous financier Peter Schiff claims: "The American currency is doomed, and the only question is when its final fall comes."
Analyst Ray Dalio supports this opinion: “The dollar loses the position of a world reserve asset, which makes it vulnerable in the long -term perspective.”
Economist and writer Jim Ricards emphasizes that "a large -scale increase in public debt and unlimited issue of money from the Fed will inevitably lead to the devaluation of the currency."
The reasons for the possible collapse of the US dollar
The main reasons that can lead to the collapse of the dollar:
Growth in public debt : US public debt exceeded $ 33 trillion, which significantly increases risks for financial stability.
Unlimited monetary stimulation : constant programs for quantitative mitigation of the federal reserve system lead to inflation and devaluation.
Geopolitical changes : weakening of the US influence in the world and strengthening alternative currency unions, such as BRICS, contribute to a decrease in demand for a dollar.
The crisis of trust : if international investors and debt holders begin to en masse of the dollar assets, this will cause a sharp drop in the course.
Forecast of the time of collapse of the American dollar
Despite the gloomy forecasts, most analysts agree that the collapse of the dollar will not happen in the near future.
Such judgments are based on the following good reasons:
The lack of a full -fledged alternative : other currencies do not yet have the necessary stability and liquidity to completely replace the dollar. The only alternative to the dollar at the moment is the euro, but this currency is experiencing certain difficulties.
Powerful American economy : the United States remain the largest economy in the world with a strong domestic market and technological superiority.
The dollar as a reserve currency : the world financial system is still firmly tied to dollar calculations, and the restructuring of this system will require decades.
Nevertheless, if the current trends are preserved, analysts suggest that the dollar may encounter serious trials from 2030 to 2040.
The collapse of the US dollar is a potential threat, but the near future of the American currency remains stable. While the world financial system is highly dependent on the dollar, and there is no viable alternative, a sharp collapse is unlikely.
Nevertheless, it is advisable to transfer long -term savings into more stable assets, such as gold, real estate or bitcoin.