SEU Why the Dollar Is in Trouble Summary of Arguments Discussion – Description
Watch this video and reflect on these questions. Post your reply with a minimum of 150 words and reply to (2) other posts.
1. Summarize the arguments made by Prof. Wolff about why the dollars is in trouble.
2. Do you agree with the arguments in this video OR do you hope/believe the politicians in charge can prevent this from taking place?
post 2 replies:
#1 1) Prof Wolff argues that the US dollar is in trouble because the global economy is shifting from relying on the US dollar for several transactions and import export trades because of the debts and deficits that are associated with the US dollar as well as geopolitical issues such as costly wars and political tensions. Wolff says the US dollar is slowly going to fade and devalue over time, it may happen in the next 10 or 20 or even 30 years, but he is certain that the US dollar is not going to be the dominant currency of the world like it once used to be.
2) I agree with what Wolff says because we can see the devaluations of the US dollar in our everyday lives. The US dollar is becoming more and more inflated and the prices of everyday goods are higher than they’ve ever been before and some of them have even doubled in price. A group of nations known as BRICS are forming against the dollar and creating their own base currency to counter the Dollar’s devaluation and to emerge economies to promote growth that is sustainable, fair, and good for everyone.
post #2
Professor Wolff argues that the dollar is losing its importance worldwide. To Wolff, it is not a matter of if but more of a matter of when the USD loses its influence. Wolff notices how trade and diplomacy brokered by China between rivals such as Saudi Arabia and Iran is fueling a seachange in geopolitics that extends towards trade and entails the end of the USD primacy. In the long run, Wolff anticipates a shift in the trade relationship between the U.S. and other nations. Eventually, the gradual demise of the USD will mean that imports will be more expensive and exports will be cheaper in foreign markets.
Although I agree that the USD has diminished its influence throughout the years, the dynamic shifts in using Chinese or Russian currencies in international trade have yet to occur. Many countries that have joined or are planning to join BRICS are unstable politically or economically—the biggest threat to the USD is not international foes but the threat of political instability brought upon by political polarization that could mean the end of the U.S.A. Domestic infighting ultimately will render the actual demise of the USD when the U.S. government becomes obsolete. Similarly, the downfall of the current Russian or Chinese states would render their BRICS worthless.
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