U.S. Dollar on the Brink of a “Stunning Collapse”, According to Economist
Peter St Onge, an economist, has warned about the fate of the US dollar and the potential impact on the quality of life in America.
According to St Onge, the de-dollarization process is already well underway, with the dollar’s share of global reserves falling from 73% in 2001 to just 47% in 2021. St Onge believes American sanctions are fueling the trend, citing the example of the US freezing $300 billion in Russian central bank dollars after the country instigated a war with Ukraine.
St Onge argues that nations are moving away from the dollar and towards alternative stores of value, such as gold and the euro, due to a global realization of the sanctions risk.
He warns that if this trend continues, there could be a total collapse in the quality of life for average Americans. St Onge predicts soaring inflation, a catastrophic fall in the American standard of living, and a decline in the country’s global standing.
Recent developments suggest that St Onge’s warning may be prescient. Argentina, a financially-troubled nation, has just announced that it will pay for Chinese imports in yuan rather than dollars.
READ MORE: Is the U.S. Dollar Losing Its Global Clout?
This move away from the US dollar follows similar steps taken by other nations in recent years, including Russia, Iran, and Venezuela. Meanwhile, the BRICS nations (Brazil, Russia, India, China, and South Africa) are reportedly working on creating a new currency that is not reliant on the USD. At least six additional countries are looking to join the alliance.
St Onge concludes that the US dollar’s decline is not a future fear but a current reality, with a “stunning collapse” already underway. Unless the trend is reversed, he warns that the consequences for the US could be dire.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
