This last possibility is more likely than it might sound. Zoltan Ban's analysis in Seeking Alpha concludes that "The final outcome of the clash may not be known, but it is naive in my view to believe that China will not hit the US at the core of its interests, including America's arguably most important asset, namely its global currency status, and it may happen sooner than some might expect."
However and whenever the great dollar crash happens, it's hard to believe the dollar has more than a decade left as the king currency. Looking at expert estimates of when the U.S. will collapse as a global empire, 2030 is the roughly agreed upon date for when at least America's global hegemony will be over. Events keep vindicating this view of where the country is going: a loss of its former hegemony, both in terms of its financial power and in terms of its military strength.
The definitive end of U.S. military dominance will come after the definitive end of its financial dominance. When the dollar collapses, the U.S. will experience high inflation, high interest rates on its mortgages and cars, great increases in the cost of food and other goods, and what financial analyst Lorimer Wilson describes as:
A much harder time financing its debt. Right now, there is a huge demand for U.S. dollars and for U.S. government debt since countries around the world have to keep huge reserves of U.S. currency lying around for the sake of international trade but what if" the appetite for U.S. dollars and U.S. debt dried up dramatically? That is something to think about.
In such a situation, Washington will be forced to massively contract its global military presence. In addition to the internal economic catastrophes that will strain the government's ability to fund the military, the loss of the dollar's dominance will mean the loss of America's ability to control other countries through financial manipulation. Overall, the IMF has been the empire's main engine for projecting influence, as it's allowed for Washington to assimilate countries into the dollar's international monetary circle and has therefore grown the corporatocracy's reach. Without financial domination over its neo-colonies, Washington will only be able to conquer other countries through the traditional method of military invasion, which will present it with very limited options in the future that the dollar's collapse will create.
With the fall of the dollar will come an international isolation for the U.S. like it's never seen before. Its economy will be destroyed at the same time that it will lose its ability to exploit other countries, and to trade with other superpowers to the extent that it has in the past. The contradictions of capitalism and imperialism will come to a head, making the country ripe for a socialist revolution.
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(Article changed on July 8, 2020 at 01:47)
(Article changed on July 8, 2020 at 03:42)
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