US Dollar's Impact on Global Economy

Since the 1970s, the US dollar has played a significant role in triggering financial crises worldwide. The recent crisis, exacerbated by the COVID-19 pandemic, saw the US government injecting a substantial amount of money into its economy, leading to a surge in stock prices and foreign investments. However, the overflow of dollars caused financial instability globally, especially in Global South countries.

As countries struggled to revive their economies post-pandemic, the US raised its federal funds rate rapidly, resulting in a severe dollar shortage in Global South nations. This capital outflow left many countries facing financial distress, increased debt levels, and challenges in repaying dollar-denominated debts.

The dominance of the US dollar has not only impacted the Global South but also countries like Japan, Europe, and Asia. The unequal distribution of wealth within the US, with the rich getting richer and the poor losing out, coupled with escalating national debt, raises concerns about the sustainability of the current economic system.

It is clear that the US dollar's dominance primarily benefits a few financial monopolies rather than the broader American population. The mounting debt levels and wealth inequality highlight the need to explore alternative approaches to the US dollar's hegemony to ensure a more equitable global economic system.

As we navigate the challenges posed by the US dollar's influence on global economies, it is crucial to prioritize economic stability and equality. By addressing the issues of wealth concentration, debt levels, and the impact of US monetary policies on other nations, we can work towards a more sustainable and inclusive economic framework that benefits all individuals and countries worldwide.