After the coronavirus infection began to spread actively throughout the United States, the country fell into a dissociative identity disorder, i.e. a condition accompanied by the association of oneself with various personalities in turn. On this occasion, we give the reasoning of US Professor B. Cohen.
The US Federal Reserve has taken the lead in regulating global finance. So, as it was, for example, during the recession in 2008. The beginning of spring is characterized by the restoration of bilateral agreements on transfers in dollars with fourteen central banks around the world. Due to this, the required amount of currency is provided to meet global liquidity requirements. The United States Federal Reserve is once again in the role of the world credit organization of last resort.
At the same time, Donald Trump expressed a reluctance to join international efforts in the field of confronting the pandemic in order to increase economic activity in the world. He still implements the policy – “First and foremost America.” Such an approach means that the authorities of other countries of the USA should not be considered as a leader, sponsoring and solving all world problems.
The presidential administration has made it clear that actions will be taken exclusively solitary and only those that correspond to their own interests.
These events cannot be described as the optimal state of affairs in the United States and do not make it possible to predict excellent performance for the dollar as a world currency. As long as the United States acts two-faced, there will remain high risks that the country will lose leadership as an international monetary and financial regulator. Not all world leaders and investors will cooperate with a partner who regularly casts doubt on their reliability.
At the moment, the risk of a huge outflow of capital from the dollar is minimal. The current crisis, on the contrary, provokes many to go into the dollar, which looks like a safe haven.
However, it is worth noting that before the pandemic, many central banks and investors actively tried to find an alternative to the dollar because of its low predictability and spontaneous actions by the US president. In view of the latter factor, many Trump opponents are trying to intentionally undermine the authority of the national currency.
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