The U.S. Dollar, As The World Currency, Is Slowly Collapsing.
Start writing a post
Politics and Activism

The U.S. Dollar, As The World Currency, Is Slowly Collapsing.

The economic impact of the death of the dollar is huge.

The U.S. Dollar, As The World Currency, Is Slowly Collapsing.

Since the Bretton Woods Conference of 1944, the U.S. dollar was adopted in international trade in exchange for gold. Back then, the United States was the largest oil importer and also held most of the world’s gold supply. But in the early 1970s, President Richard Nixon gave up the gold standard World Reserve Currency for Petrodollar. Now it is alleged that Petrodollar is collapsing while gold and Chinese Yuan are gaining momentum. If so, what impact will the death of the dollar have on the U.S. economy?

According to Currency report, several countries, including Saudi Arabia, Sudan, Venezuela, South Korea, China, Russia and Iran, are abandoning or consider abandoning Petrodollar. Some of those countries are trading in gold or in a currency of their choice. Fed up with the U.S. hegemonic militarism and impertinent meddling in world affairs, BRICS countries like Brazil, Russia, India, China and South Africa also form an economic bloc, which is self-sufficient and out of the realm of any other country’s influence.

For example, China, a BRICS nation, is the world’s largest oil importer and second world economy. Now with the eventual collapse of the dollar, China appears to have enough leverage to change the status quo or end altogether the standardization of oil trade to Yuan. If the Chinese Yuan replaces the U.S. dollar in international trade, it will be a game changer, and China would move up to number one spot on the world economic ladder.

If it is the case, the death of the dollar will have a seismic impact on U.S. economy. The United States would lose its status as the world’s number one economy; Federal Reserve would not be able to print dollars as it used to; the inflation will soar; a severe recession would kick in; the stock market would crash, and the U.S. Treasuries and Bonds would be less useful.

The United States is a debt-based economy ( 20 trillion dollars owed). People buy on credit and incur heavy mortgages, etc. The U.S. government is also deeply in debt. In such a situation, the government would be unable to turn things around. For the fact is that the market is self-regulating, which means that if the economic principle of supply and demand cannot stabilize the dollar, the only option left for the United States is to declare war on Russia, China or Iran. But it would be unjustly a Petrodollar war.

Let’s take a retrospective glance at history. Saddam Hussein, ex-dictator of Iraq, requested to be paid in Euro instead of the dollar for its oil. Consequently, Iraq was invaded, and Hussein was arrested and hanged. Also, Muommar Khadafi of Libya wanted to be paid in gold instead of the dollar for its oil, so NATO countries took over Libya, and Khadafi was later killed. Coincidently, going to war to save the U.S. dollar is a decision that could lead to WWIII. In fact, all major players, the United States, Russia, China and their allies are gearing up for WWIII. The possibility of Petrodollar collapsing could be a pretext for a global conflict.

A Canadian billionaire, Ned Goodman, CEO and President of Dundee Corporation, stated that the U.S. dollar will be defunct in the near future. So people beware. The best course of action is to diversify your assets in gold and silver with some in the United States and some elsewhere before things turn ugly. Far from being pessimistic, I am rather proactive. One clear example is that China is now in the process of spending trillions of U.S. dollars it had in reserve.

No dominion in history ever lasted eternally. From the beginning of time, empires have emerged and disappeared. The eventual collapse of the U.S. dollar means the end of the U.S era as a world economic superpower. In that case, what would follow is the recurrence of the Great Depression of the 1930s; Chinese Yuan or gold would take over as the international currency.

But let’s be optimistic because the opposite could be the unexpected reality. So my prediction is that Petrodollar will thrive and survive the challenge. Otherwise, "A weak currency is the sign of a weak economy, and a weak economy leads to a weak nation." Ross Perot.

Report this Content
This article has not been reviewed by Odyssey HQ and solely reflects the ideas and opinions of the creator.
Health and Wellness

5 Simple Ways To Give Yourself Grace, Especially When Life Gets Hard

Grace begins with a simple awareness of who we are and who we are becoming.

Photo by Brooke Cagle on Unsplash

If there's one thing I'm absolutely terrible at, it's giving myself grace. I'm easily my own worst critic in almost everything that I do. I'm a raging perfectionist, and I have unrealistic expectations for myself at times. I can remember simple errors I made years ago, and I still hold on to them. The biggest thing I'm trying to work on is giving myself grace. I've realized that when I don't give myself grace, I miss out on being human. Even more so, I've realized that in order to give grace to others, I need to learn how to give grace to myself, too. So often, we let perfection dominate our lives without even realizing it. I've decided to change that in my own life, and I hope you'll consider doing that, too. Grace begins with a simple awareness of who we are and who we're becoming. As you read through these five affirmations and ways to give yourself grace, I hope you'll take them in. Read them. Write them down. Think about them. Most of all, I hope you'll use them to encourage yourself and realize that you are never alone and you always have the power to change your story.

Keep Reading... Show less

Breaking Down The Beginning, Middle, And End of Netflix's Newest 'To All The Boys' Movie

Noah Centineo and Lana Condor are back with the third and final installment of the "To All The Boys I've Loved Before" series


Were all teenagers and twenty-somethings bingeing the latest "To All The Boys: Always and Forever" last night with all of their friends on their basement TV? Nope? Just me? Oh, how I doubt that.

I have been excited for this movie ever since I saw the NYC skyline in the trailer that was released earlier this year. I'm a sucker for any movie or TV show that takes place in the Big Apple.

Keep Reading... Show less

4 Ways To Own Your Story, Because Every Bit Of It Is Worth Celebrating

I hope that you don't let your current chapter stop you from pursuing the rest of your story.

Photo by Manny Moreno on Unsplash

Every single one of us has a story.

I don't say that to be cliché. I don't say that to give you a false sense of encouragement. I say that to be honest. I say that to be real.

Keep Reading... Show less
Politics and Activism

How Young Feminists Can Understand And Subvert The Internalized Male Gaze

Women's self-commodification, applied through oppression and permission, is an elusive yet sexist characteristic of a laissez-faire society, where women solely exist to be consumed. (P.S. justice for Megan Fox)

Paramount Pictures

Within various theories of social science and visual media, academics present the male gaze as a nebulous idea during their headache-inducing meta-discussions. However, the internalized male gaze is a reality, which is present to most people who identify as women. As we mature, we experience realizations of the perpetual male gaze.

Keep Reading... Show less

It's Important To Remind Yourself To Be Open-Minded And Embrace All Life Has To Offer

Why should you be open-minded when it is so easy to be close-minded?


Open-mindedness. It is something we all need a reminder of some days. Whether it's in regards to politics, religion, everyday life, or rarities in life, it is crucial to be open-minded. I want to encourage everyone to look at something with an unbiased and unfazed point of view. I oftentimes struggle with this myself.

Keep Reading... Show less

14 Last Minute Valentine's Day Gifts Your S.O. Will Love

If they love you, they're not going to care if you didn't get them some expensive diamond necklace or Rolex watch; they just want you.


Let me preface this by saying I am not a bad girlfriend.

I am simply a forgetful one.

Keep Reading... Show less
Student Life

10 Helpful Tips For College Students Taking Online Courses This Semester

Here are several ways to easily pass an online course.

Photo by Vlada Karpovich on Pexels

With spring semester starting, many college students are looking to take courses for the semester. With the pandemic still ongoing, many students are likely looking for the option to take online courses.

Online courses at one time may have seemed like a last minute option for many students, but with the pandemic, they have become more necessary. Online courses can be very different from taking an on-campus course. You may be wondering what the best way to successfully complete an online course is. So, here are 10 helpful tips for any student who is planning on taking online courses this semester!

Keep Reading... Show less

Take A Look At The Extravagant Lane Woods Jewelry Collection For Valentine's Gift Ideas

So if you are currently looking to purchase jewelry for yourself or as a romantic gift for your S.O., you should definitely look at the marvelous and ornately designed Lane Woods Jewelry collection


Just like diamonds are a girl's best friend, so are pearls, rubies, gold, emeralds, and any type of luxurious jewelry you can get your hands on! A woman is incomplete without a piece of jewelry on her and it is a gorgeous accessory required for all occasions. So if you are currently looking to purchase jewelry for yourself or as a romantic gift for your S.O., you should definitely look at the marvelous and ornately designed Lane Woods Jewelry collection.

Keep Reading... Show less
Facebook Comments