American economist told what will happen to the dollar in the event of a default in the United States

In his opinion, such a development of events will affect the citizens of the United States and worsen the position of the States in the world. The expected default will push for “the overthrow of the dollar from the throne of the world’s leading currency.”

“At the same time, Washington will lose the ability to endlessly print money in the form of Treasury bonds and other securities,” he said.

McDonald recalled that major world powers have already begun to abandon settlements in dollars when conducting transactions and have begun to switch to other currencies. He added that this situation is connected with anti-Russian sanctions.

The authorities of Brazil and South Africa insisted on abandoning the dollar and creating their own BRICS currency. The reason was the US sanctions policy against Russia and China, which will affect the economies of countries. It is expected that the issue will be discussed at the association’s summit in August 2023. Economist Vasily Koltashov said that the accession of Saudi Arabia to the New Development Bank of the BRICS will hit the US, because it brings the chance of creating a new currency to counter the dollar.