The experts assume that the global crisis has already been underway for 5 years. Yet, it is expected to last in the near future. The crisis has nearly crashed the neo-liberal economic and political order – the global domination of the USA and its national currency. The experts are looking for alternative strategies for the world amid post-globalization.
In the 1970s we saw another major crisis, which came as the result of the “New Deal” (it dominated capitalistic economies over several post-war decades). At that time, the governmental regulation went too far: most economic sectors became loss-makers amid higher bureaucracy, corruption and lack of initiative. In other words, the remedy started turning into a poison. As a result, the solution was found in… Reaganomics and Thatcherism – neo-liberalism (in terms of economy, the market is superior to the state, implying the healing freedom of private business). The focus was shifted from regulating the demand for products and services to stimulating production. It was attended by tax cuts and social program reduction. As a result, we saw several decades of economic growth and prosperity in the world’s leading economies.
As for the fate of the US Dollar, multiple experts participating in various forums and summits have been burying it alive for several decades. However, they still haven’t found any decent alternative because 43% for all international transactions are made in USD. On top of that, some 50% of all sovereign debts are USD-denominated while 61% of central bank reserves worldwide are stored in US dollars. For example, China owns over $1000bn in US T-bonds.
