George Soros in 2009: « The system has already broken down, only we didn't quite recognize it... a managed decline of the U.S. Dollar is necessary... China will be the new engine of the growth... The U.S. will be a drag on the world economy. »
No one didn't listen then.
I recently came across this interesting interview with billionaire investor and philanthropist, George Soros, where he discussed the concept of "de-dollarization" and its potential impact on the global economy.
In the interview, Soros warned that the dollar's status as the world's reserve currency could be at risk and that the consequences could be significant.
Here are some key numbers from the interview:
🔸According to the IMF, the US dollar makes up around 62% of the world's foreign exchange reserves.
🔸The US trade deficit has been growing steadily over the past decade and reached $679 billion in 2020.
🔸China has been making significant efforts to promote the use of the yuan as an alternative to the US dollar in international trade. In 2020, the yuan was the world's fifth-most-used currency for international payments.
Soros warned that the US could face a "financial armageddon" if the dollar were to lose its status as the world's reserve currency.
These numbers illustrate the potential impact of de-dollarization on the global economy and the US in particular. While it is unlikely that the dollar will lose its status as the world's reserve currency anytime soon, it is essential to consider the potential risks and take steps to prepare for the future.
💭 What are your thoughts on de-dollarization and its potential impact on the global economy?
💬 Let's continue the conversation in the comments below.
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