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Will the United States Collapse on the Dollar?


There is an old saying that says “history does not repeat itself, but it rhymes”. And that is what some analysts are seeing in the situation of the world economy. Well, while the main governments of the world have launched multimillion-dollar stimulus packages to face the Coronavirus crisis. Many believe that this can lead to hyperinflation of fiat money. Or as the analyst known as PlanB says in the Tweet of the day, to the collapse of the United States by the dollar:

United States and the strength of the dollar

Two thousand years ago there was no nation on the face of the earth that could compete with the power of the Roman Empire. The legions of Rome had in fact turned the Mediterranean into an imperial lake. And his wealth allowed him to reach a degree of prosperity never before seen in the Europe of antiquity.

However, this situation could not last forever. Well, as the Empire expanded, and the financial needs of it grew.

, Will the United States Collapse on the Dollar?, Forex-News, Forex-News

The only recourse their rulers found to be able to continue financing the government’s military spending was the uncontrolled issuance of money. Generating an inflationary crisis that ended up leading to the collapse of the Empire.

This story resonates today with many market analysts. Those who see in the attempt of the United States and other western countries to face the Coronavirus crisis through monetary issuance.

The perfect recipe to depreciate the value of the dollar, and collapse the international financial system. Precisely the opinion expressed by the analyst known as PlanB on Twitter:

History repeats itself. The Romans also destroyed their empire by degrading their currency. An Important Reading: “The Decline and Fall of the Roman Empire” by Edward Gibbon

, Will the United States Collapse on the Dollar?, Forex-News, Forex-News
Will the United States collapse for the dollar as the Roman Empire did for Denarius? Source: University of Tulsa

Of course, we do not live in the time of the Roman Empire, and the tools available to the United States to deal with crises are broader and more powerful. However, the simple fact that many analysts wonder if the United States will collapse due to the dollar. It is a bad sign about the direction that the monetary policies of the North American country are taking.

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