Introduction
Russian President Vladimir Putin has recently made a statement that the US dollar-based global financial system is gradually collapsing. This article will explore Putin's statement and what it could mean for the global financial system.
Putin's Statement
According to several news sources, Putin has stated that the global financial system created on the basis of the US dollar is gradually collapsing. He has underlined the need for a new non-dollar based global economic order. Putin has also asserted that the dominance of the American currency has to end, which is already happening, while the US authorities are "shooting themselves in the foot" with their policies
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The Current State of the Global Financial System
The US dollar has been the dominant currency in the global financial system for decades. It is used as a reserve currency by many countries and is the currency of choice for international trade. However, the global financial system has been facing several challenges in recent years.
One of the challenges is the increasing debt levels of many countries. The COVID-19 pandemic has led to a significant increase in government debt levels as countries have had to provide stimulus packages to support their economies. This has put pressure on the global financial system, as countries struggle to service their debt.
Another challenge is the increasing use of cryptocurrencies and digital assets. These new forms of currency are not tied to any particular country or government and are not subject to the same regulations as traditional currencies. This has led to concerns about the stability of the global financial system and the role of traditional currencies like the US dollar.
What Could Happen Next?
If Putin's statement is correct and the US dollar-based global financial system is collapsing, it could have significant implications for the global economy. A collapse of the global financial system could lead to a global recession or even a depression. It could also lead to a shift in the balance of power between countries, as countries that are less reliant on the US dollar become more influential.
However, it is important to note that Putin's statement is just one opinion, and there are many other factors that could impact the global financial system. It is also worth noting that the US dollar is still the dominant currency in the global financial system and is likely to remain so for the foreseeable future.
Conclusion
Putin's statement that the US dollar-based global financial system is collapsing has raised concerns about the stability of the global financial system. While there are certainly challenges facing the global financial system, it is important to remember that the US dollar is still the dominant currency in the global financial system. It is also important to note that there are many other factors that could impact the global financial system, and it is difficult to predict what will happen next.
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