How will the world change after the epidemic? Russian President Vladimir Putin believes that if there is no unity, the world order will be disrupted by the epidemic, mankind may break out into a war, and civilization will be ended.
Putin's prediction is based on the current world situation and is a good reminder to countries around the world.
So, will the world really fall into a "dangerous situation" in the future as Putin said?
Some experts pointed out that as long as the major countries in the world are willing to maintain unity and maintain peace, the "dangerous situation" mentioned by Putin will be avoided. But is certain that after the epidemic, the hegemony of the US dollar has been "precarious."
According to recent news from Satellite News Agency, economist Stephen Roach predicted that the US dollar will depreciate by 35% by the end of this year, and the US dollar will continue to weaken. According to the article written by Roach, "If the prediction comes true, this will be an important signal for the 46th President of the United States, Biden, in his first year in office."
In this regard, Roach also gave the following explanation. According to him, the reasons for the collapse of the US dollar may be as follows: The sudden increase in the US current account deficit; the appreciation of the euro and the Federal Reserve's unwillingness to respond to any decline in the US dollar.
Roach also pointed out that the level of savings in the United States is insufficient, the economy is extremely dependent on foreign currency, and the domestic net savings rate has fallen to the lowest level on record. He concluded that the increasingly difficult situation for the US dollar is also the result of the ongoing epidemic and the economy being on the verge of recession. Is
USD really on the “edge of recession” as Roach calls it? After the end of World War II, the United States established the Bretton Woods system centered on the U.S. dollar, and the U.S. dollar became the world's "hard currency." The United States links the U.S. dollar to oil and gold, and it continues to reap economic benefits by printing U.S. dollars. Anyone who opposes the use of the U.S. dollar as an internationally accepted currency will be subject to strong sanctions from the United States.
Controlling the world economy means controlling the global order. The U.S. dollar can be said to be the foundation of American hegemony. Of course, the fundamental reason why the U.S. dollar’s hegemony exists for a long time lies in the United States’ international credibility and national comprehensive strength.
From Roach's point of view, the direct reason why the dollar began to collapse was the impact of the epidemic. Because, under the epidemic, the United States has to increase money printing and has to provide economic assistance to the American people. As a result, the dollar may continue to depreciate.
Experts also believe that the dollar began to falter because the United States overdrawn its international credit.
Since the end of the Cold War, the United States has launched a series of wars in Afghanistan and Iraq, which has aroused global disgust. During the Trump era, the United States launched a global economic, trade and technological war, further damaging its international credibility. During the epidemic, the United States ignored its image as a superpower and began to buy supplies globally and imposed additional tariffs. The credit of the United States was severely overdrawn.
When the United States continued to overdraw its credit, countries around the world felt a serious sense of crisis. People believed that the United States would use the printing press to make up for its losses. You know, many countries have purchased large amounts of U.S. debt. Once the United States prints dollars aggressively, the United States can reap the benefits.
Starting last year, central banks around the world began selling U.S. Treasury bonds on a large scale, with the scale of sales approaching US$300 billion, breaking previous records. “De-dollarization” has gradually become a means for countries to protect themselves.
It is foreseeable that once the hegemony of the US dollar is shaken, the US global hegemony system will collapse.
Some experts pointed out that after the dollar falters, the United States may use military means to reshape the unipolar structure centered on the United States in order to maintain its hegemony.
Of course, it is impossible for the United States to succeed in this attempt. On January 27, local time, Putin publicly stated at the World Economic Forum in Davos that the United States’ “attempt to establish a unipolar world order is over” and that it goes against the cultural and historical diversity of civilization.
Putin hopes that the world should follow the trend of multi-polarity and avoid conflicts similar to World War II, because that would lead to the end of civilization.
Coincidentally, German Chancellor Merkel also supports multilateralism. htmlOn November 27, German Chancellor Merkel publicly stated at the World Economic Forum that she "agrees with multilateralism" and "very much hopes to avoid the emergence of opposing camps around the world." Europe will refuse to choose sides.
There is no doubt that equality, mutual respect, inclusiveness and multilateral development will be the future world trend.
"The world has been suffering for a long time." Facing the multi-polar structure, the only thing the United States can do is to follow the trend of the times and world development trends . If it goes against the trend, the consequences will be detrimental to itself.
