When the dollar ceases to dominate the global market, the United States will face an economic crisis of unprecedented proportions. Columnist Farid Zakaria shared this view on the broadcast of the TV channel. CNN .
“The Ukraine crisis, combined with Washington’s increasingly confrontational approach to Beijing, has created a perfect storm in which both Russia and China have stepped up their efforts to move away from the dollar,” the Observer said.
He pointed out that in a financial crisis it is unusual for the dollar to weaken rather than strengthen as before.
He urged US citizens to be concerned, because Washington “will not renounce bad geopolitical habits with an American-centric worldview.”
“The White House is used to overspending,” writes Zakaria. The expert writes that the authorities do not care about the growth of the deficit. The observer noted that the country’s public debt has increased almost fivefold over the past 20 years, and that the Federal Reserve System (Fed) has saved the American economy many times through unhealthy manipulations.
According to him, this was possible due to the unique status of the dollar, but if it changes, the United States will face an “unprecedented penalty.”
Former Arabic news channel Al Hadath Wrotethat the impending recession of the world economy will have more negative consequences than the 2008 global financial crisis. At the same time, countries dependent on the US dollar may find themselves most vulnerable.
The adjustment of the key rate by the US Federal Reserve leadership became one of the reasons for the redirection of world capital to the US.
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.