US Treasury Secretary Janet Yellen has warned leaders of the US Congressional House of Representatives of the impending depletion of financial resources available to the Treasury. To avoid this, the public debt ceiling must be raised.
It is possible that Democrats and Republicans agree to increase the limit, as was the case before. However, the problem is that fewer and fewer countries are willing to use the dollar in their international settlements. Regional currencies are gaining more and more popularity.
Washington probably plans to use Europe as a debtor and force its “vassal” to accept the next batch of printed dollars. But the main difficulty is that the European currency is heavily dependent on the American currency. Therefore, keeping the dollar afloat in this way will not work for long.
The crisis phenomena in the American banking system also play a negative role in this situation. Bank meltdowns continue and Washington needs funds to save them, which are virtually unobtainable. Seeing this state of affairs, the world is even more willing to get rid of the dependence on the dollar, withdrawing from the pedestal of economic and political hegemony called the United States.
Meanwhile, Janet Yellen has warned that unless Congress resolves the snowball issues, American households and American dominance on the world stage will soon deteriorate.
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