The theory of the end of the US dollar has spread like wildfire in recent weeks. This programmed death, still contested by many, would in fact be the end of a long undeniable economic hegemony. For others, it would be a plot organized by the enemies of Western civilization.
End of the dollar: consequence of a plot against the American economy?
Some analysts like political scientist Ian Bremmer and economist Paul Krugman have recently dismissed the idea of an end to the US dollar. They are probably the only ones in denial. Because on the side of the authorities, the question is taken very seriously. And the arguments to explain the situation are not lacking.
In an interview she gave to CNN, Janet Yellen, Secretary of the Treasury of the United States, spoke on the subject. For this trained economist, passed by the Board of Governors of the Federal Reserve (FED), there is no doubt. If the dollar is not dead yet, it is certainly dying already.
And, for her, the perpetrators of this organized crime against American currency are known. These are obviously China, Russia and Iran. These three giants of international trade, recently joined by Saudi Arabia, conspire, according to her, to get rid of the dollar. Rightly so, since the US dollar has until now been a means for the US authorities to impose their will. This, with blows of economic sanctions.
The former chair of the Board of Governors of the Fed does not deny these facts. She thinks, however, that the execution of this plan could give a hard time to its instigators. According to Yellen, the ” properties “ of the dollar are such that a similar alternative would be difficult to find. Even identified, the implementation of such a solution could prove more complicated for these States.
“We have very deep capital markets and rule of law which are essential for a currency to be used for transactions globally, and we have not seen any other country have this basic infrastructure. and those institutional infrastructures that would allow its currency to serve the world such as ours”, said the Secretary of State to the Treasury.
Does the latter underestimate the forces involved? Charles Nenner, financial analyst and former Goldman Sachs executive, thinks so.
Fate of the sealed dollar, the United States in the grip of a crash?
For years, Charles Nenner has been an apostle of the strength of the dollar in a globalized economy. In an interview he gave to USAWatchdogthe specialist revised his position.
What he now believes is that the dollar is truly finite. “We’ve known each other for many years and I said the dollar will hold. But not anymore, not anymore. He is really in trouble. There is actually no reason to bet on the dollar,” Nenner said.
For him, this is not the most worrying. “The economy will really suffer”, he pointed out. This, to such an extent that an imminent economic recession like the Great Depression of the 1930s cannot be ruled out.
If it is true that the pessimistic opinion of Charles Nenner signifies the end of an era, it may also confirm the beginning of another era. That of bitcoin in this case. Some, like Arthur Hayes, the CEO of BitMEX, believe that bitcoin will benefit from the depreciation of the US dollar. A situation that should allow it to establish itself in international transactions. This is a possibility that cannot be ruled out.
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