Run for your life, the American debt avalanche will bury the American dollar and everything American

That is a threat that will do more damage to itself than countries holding its debts. Internally, the USA community holds more of its own debts than foreign entities. That is the Sword of Damocles hanging above its head.

Countries holding a third of USA debts can still survive, but the USA pension funds, hedge funds, banks and USA people will go back to the stone age. And the US$ will literally become banana notes overnight. That it did not do so when the US$ was decoupled from gold backing was that the world had no other alternative and no BRICS to counter.

Apart from the threat of writing off its debts, even a default to service its interest payments will bring disaster to the US$ hegemony. And if the USA debts keep piling up, that default is not that far away. The USA, like Japan, is now economically between a rock and a hard place. No solution is in sight.

And the problem is made more unpalatable now that BRICS has a new system in place to lead the world away from the SWIFT system and an agenda of de-dollarization taking hold more and more decisively.


Anonymous