Topic: Why the us dollar might crash significantly (Read 471 times)

Bleah, GDP PPP, which the CCP can play around with by subsidizing some thing so it appears than your 100 yuan are worth 1 quadrillion euros, the PPP indicator, or how to tell people in Bangladesh that their bread is the equivalent of dining on foie gras on Champs-Élysées.

Here is an actual indicator, which btw, holds true even if we express it in BTC
https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=CN-US



This is the actual reality!

If you go with that stupid GDP PPP indictor:
https://data.worldbank.org/indicator/NY.GDP.MKTP.PP.CD?locations=BD-CH-SE-NO
Bangladesh is doing better then Switzerland, Sweden and Norway!
That must be the reasons why so many Scandinavians are trying to seek refuge there and not the other way round! 

I think it’s unlikely to happen but not impossible. There are ways that the US $ could potentially crash. One key factor is excessive government debt which can erode confidence in the currency. A large trade deficit where the US imports more than it exports can put pressure on the $ value. Economic instability, political uncertainty & global events can also have an impact on the $ stability. Interest rate adjustments or quantitative easing can affect the value of the $. These factors if not effectively managed can contribute to a potential crash in the US $.

Here we go. Another wild conspiracy theory about the dollar crashing. Some people need to wake up and face reality which is the dollar keeps getting stronger and stronger with time regardless of the changing times.

The US and the dollar will continue reigning supreme unless they self-destruct due to their own stupidity which obviously has a low likelihood of happening. Think!

Well this is for me a kind of war on economic super powers and the seizure of funds plus the sanctions are just a portion of the ongoing economic war between Russia, North Korea and America that is why some other nations do not even try to violate the interests of the US. It has nothing to do with the dollar getting crashed by other currencies because majority are still pegged to the dollar and that is what it makes stronger than any other currency. The dominance will still be there as long as majority of countries use the dollar to trade commodities worldwide.

during the war conditions the economy involved in the war either directly or indirectly will experience problems. especially the problem of currency value. because the war opponents also want destruction for their war opponents. and in this case the United States must spend a lot of money on its budget to help the Ukrainian military with its military equipment whose nominal prices and costs are not small, including those that disrupt the economy so that it affects the value of its currency in this case the dollar.

Growth goes up and down, and it's a lot easier to grow when you are starting from a smaller number. China's economy has been running into problems lately that are bad signs for the future.

So what makes you think China is going to sustain that growth? What about their system, inherently, makes it so they will always grow faster than the US?

And China spends a greater percentage of their GDP on their military than the US does, so....

   

China is doing exceptionally well compared to US and that is the reality, if you are too blind to witness then I can't argue about that. The US investing heavily on defense whereas other countries are utilizing the same money to bring more revenue to their government.

I also think it would make sense for the US to continue to strengthen their economic sector rather than thinking more about other things that have no effect on the competitiveness they have generated so far. Because the influence of this economic force is also quite clear, it can be evenly distributed and comprehensive for every sector so that any country will remain strong if it has had a lot of success through the economic sector and also other sectors that can influence the economic growth of the country itself.

What makes you think China is so perfect? I would dub their government to be far less stable than ours.

Everything has a threshold limit, if the US keeps pushing its limits harder then I don't see why they can't fail.

All the countries knew that China is progressing to surpass US in a decade or two in terms of overall GDP which can turn the geopolitics upside down, so what US needs to do is try to stronger their economy instead of keep repeating the mistake they have been doing for the 50 years.

That's what America and Europe are afraid of. Despite various pretexts for helping Ukraine with the motto that Russia must lose, the real fear is the loss of hegemony and the fall of their currency. But believe me, everything will be possible, nothing is impossible, now China can surpass America in the world market, it is not impossible that one day the dollar will be abandoned by many countries and in the end the dollar will fall drastically.

Moreover, with the creation of a new trade order and economic system so that it does not depend on the American dollar and Euro, if the foreign exchange reserves of countries such as Russia, China and even BRICS members are large, it is very possible that the value of the dollar and euro will weaken.

You forgot the part that the US can always print more dollars to fund their wars and stuff, the war on Ukraine is already a resounding success for the companies that manufactures radars and new weapon systems so there's no way that they'll crash, the US government wouldn't mind adding a few more trillion dollars of debt to their name in the name of being the strongest superpower nation in the country. They'll continue to be like that to keep the dollar as the money that will turn this world around. Global politics is complicated and what you're saying might not be true and what I might not be saying is true too but we can't be sure but I do know that it's definitely difficult to crash the US dollar or even crumble the US government.

I strongly feel that all of these predictions are threat to the US dollar.Can the US dollar really crash?A currency is liable to crash when it loses it's  value completely or is entirely abandoned by the governmental body organizations.An occurance of these events
and economic factors can contribute to depreciating the U.S. dollar. These include monetary policy, rising prices or inflation, demand for currency, economic growth, and export prices.
 
  The US dollar crashing seems impossible to me initially,because it has been the worlds most used and prominent currency ever the since the second world war.If it eventually crashes,there will be a disastrous and catastrophic damage to the worlds economy hereby leading it into a global recession.

I know the BRICS countries are trying to promote thier currency in global trade.They have been making efforts to increase their global influence and adoption but its all a competition;BRICS vs US dollar,the US dollar is king,let's watch it unfolds.

Apparently,there is'nt any alternative currency to the US dollar,the US dollar is second to none and let's all be guided on how to survive in this economical uncertainty.

If some country adheres to the concept of terrorism, ignores international laws, agreements, and commitments, and behaves like scum - such countries and regimes should certainly transfer their assets. Exchange the dollar for the ruble, and transfer assets to.... And by the way - where will the terrorist countries move their assets?

To rebalance debts, recover losses from laws broken is not new news in terms of trade balance and agreements I think we can go back decades for moves against rogue governments.  We could speculate is USA doing this unilaterally do they have the backing all members of the WTO for example, not all but I think its not unprecedented action.
  Venezuela is one country I can think of regularly seizing the assets of foreign firms as evil capitalists not matching their governments agenda to empower their people with the control and ownership of everything.  Sadly that attitude didnt work out and the government is resolved to yet another military dictatorship failing and killing their own people while sitting on the largest oil reserves in the world they cannot use them properly or allow others to help them do so.  
   In any case Venezuela had to pay for the assets seized, they risked seizure of any good traded internationally.  Russia again has done this for decades not just Ukraine but often unable to respect international law and no doubt will continue in the same way, again they have regularly had assets seized in order to settle the debt.  Its still damaging and failure in business but the process to return back value lost is not a new occurrence.

Socgen just sold assets to a Russian company for example, in the middle of a war which is illegal occupation of a sovereign state but it would be a failure to block or fail to pay for these assets and expect no debt to be accrued.

We are already in times preceding a new world order of which ushers in new currency for some of the major countries in the world. The BRICS nation already see such happening to the dollar because with such expenses and use of dollar to fund wars, the exchange rate rises to compensate the value it offers at that time.
Many countries trade with the dollar and if it were to crash tomorrow, the economy of many countries would be varsly affected. Interest rates will sky rocket unless there is an alternative to the fiat and foreign exchange use.
 That's what and why cryptocurrency stands to assure continued transaction across border despite the exchange rates, the dollar crashing or rising and the tax system involved.

it is bound to crash significantly from the get-go. The only thing that's really stopping it from now are a few planks plastered across the door so the pandemonium couldn't come in, but since these are nothing but band-aid solutions its bound to break or lose its effectivity soon, and when it does the US dollar's gonna fall along with all the currencies and assets/enterprises that built their foundations around it. No amount of Russian War's gonna stop nor hasten the effect of this cascade as it's gonna run it's course no matter what, so while your inference is correct I couldn't for the life of me agree with the reasons why you came up with the same prediction.

The debt ceiling is already increased and next year, they will have to increase it again or else they are going to be in deep financial trouble. They couldn't possibly pay off all their loans now since the US is not resource-rich, nor could they outsource their workers, plus most of their debts came from the stupid wars they waged against other countries so I doubt people are just gonna let them slide that easily. We truly are in the dark times now so it seems.

that doesn't sound like it can justify the confiscation. they created a problem for Russia to not be able to pay after being blocked from SWIFT and then accused them that they didn't pay.  but this wasn't the first time, remember the assets of Afghanistan were also seized when the Taliban took over the government to which they claim the funds will be used for the victims of terrorism to justify. regardless of who governs the country, the asset still belongs to the country.

it might depend on how other countries will interpret it but these countries found an alternative to SWIFT to conduct their international trades.
they were pushing countries like Russia, Iran, China, and NoKor to have a system where they could trade freely without using USD. it's a lot harder to control them in the end.

1. Most the assets of the Russian central bank are in Europe, so I don't think that Joe Biden has a major role in the decision about whether or not to confiscate the assets.
2.The European politicians and bankers aren't dumb. They know the consequences of such decision, so the European authorities are trying to come up with legal justification of such confiscation. Confiscating the assets without a proper judicial justification means stealing.
The best decision would be to use the blocked Russian assets to payout the Russian government debt, which is owned by western creditors. Many banks and investment funds used to own Russian government bonds, but Russia failed to pay interest rates, because it was banned from the SWFT system. Such solution would be way better than "confiscate the assets and give them to Ukraine".

This method is clearly not working out in favor of west hence they should adopt a different strategy and it's a loss to west that more countries might start getting alienated from USD. joe biden and whoever gives these non sense suggestions should understand that they are just increasing suffering of ordinary people by doing this and it would create create hatred amongst the mind of ordinary people and they are not causing any damage to Russian regime. Already were have seen so many failed sanctions and siege on Iranian front going harmless on the regime.