I am not a fan of Vladimir Putin, but I agree with him that the dollar is in big trouble. Countries in Europe whose sovereign debt is out of control are at least cutting spending by implementing “austerity measures”, trying to get their spending under control.
The United States has not made significant cuts, and our debt is already over 100% of our GDP, and going up quickly. The country’s leaders do not have the courage to bring the spending back under control. I read some time ago that if we brought the spending down to 2.2 TRILLION dollars, that the budget would actually balance (something we haven’t seen in over a decade). Yet rather than going down, our budget is going up.
The United States can print its own money (unlike, say, Greece) so it will not go bankrupt per se. Yet we may be in for a rough ride with inflation in the years ahead. And the investments that other countries and private entities have made in the U.S. could turn out to be very bad investments.