USD, SDR, Economic Collapse, Sovereign Debt, China, Russia, SWIFT, and SAP
The fear of an economic collapse is a constant emotion which spans across financial demographics and business news cycles. Everything from sovereign debt pressures to currency wars, with trade wars sprinkled in for good measure, are leveraged as potential sparks for the next crisis.
Over the last five years, I have made a reasonable case that central bank monetary policies around Quantitative Easing (QE), and the subsequent Quantitative Tightening (QT), or normalization of monetary policy, would not lead to the dollar collapse and economic turmoil that so many had been predicting. There has been much written about the QE response to the financial crisis of 2008 and the inevitable normalization of those policies which would follow. So let’s just focus on the basic economics to help us understand the broader impact of these policies and the direction the world now appears to be taking as a response to the last crisis.