Loss of faith in the almighty dollar?

by Terence MacNamee

Myret Zaki is the co-editor of the business magazine Bilan in Geneva. She is a bold and original thinker about the future of the world’s economies. She has said in a recent book[1] that the end of the dollar is coming, meaning that the US dollar will cease to be the world’s reserve currency. This is because the US is so indebted that its economy will experience a crash sooner or later.

She sees American economic policy as one of state intervention in the financial markets to preserve the status quo. The Americans are doing everything they can to put off the inevitable. But the rest of the world is gradually losing faith, she thinks.

She sees the Euro crisis of 2008 as having been a diversionary manoeuvre. The Americans did not want to see the Euro become a stronger haven for capital than the dollar. So their financial industry attacked the Euro. Financial speculators are in a position to drive small nations out of the capital markets. This is what happened with Ireland and Greece. But this was parlayed into a “Euro crisis”. In the long term, however, the Euro remains strong, a currency with a future, and the rest of the world is beginning to see it this way.

Myret Zaki sees China as being the ally of Europe in this respect, as it is in China’s interests for the Euro to be healthy and to challenge the dollar’s continued supremacy.



[1] Myret Zaki, La fin du dollar, Editions Favre, 2011