Basically European Central Bank will try to fix all their problem with creating more money. Which is never good idea in the first place.
It is as Maloney said - Keynesian economists can't drive the world's economy, it is not sustainable in the long run. They know that, too.
At this point I am starting to believe it is scheme created to purposely induce economic crisis.
I think that the system can go on as long as people accept dollar as the world currency. Sure, the devaluation of the dollar has been insane for the past decades, but if you ask people around you, they will not be aware of this devaluation, and everyone still accepts dollar as the king currency. So as long as people accept it... I don't see how the system will collapse. As long as people keep doing their normal life, I don't see riots in the streets about it anytime soon. Maybe once they remove cash, then we will see some serious shit, since a lot of people is surviving by doing undeclared work.
maybe in the eyes of the average person on the street the dollar still stands strong, but geo-politically the dollar is on its death bed.
China, Russia and many other countries made currency swap deals with each other and other nations to circumvent the dollar.
Many oil producing countries accept currencies other than dollars. Most of the wars in the middle east were actually a futile attempt of america to keep their precious monopoly on oil. As in, enforcing that oil can only be bought for dollars, while forcing those countries to spend a lot of those dollars on bonds, which allowed the USA to print many dollars without getting a lot of inflation, and which is also the reason why america could import so much without having a large export market, something no other country could pull off.
Not only the recent wars in the middle east, but basically all the wars since 1900 or so were fought mainly for control of oil. Even the two world wars were at least in part about control of oil. Sure, there were more things going on in those world wars, but oil was a very important factor as well.
America has lost their grip on the petro-dollar, and they will never be able to keep importing this much without having a healthy export market and maintaining the dollars value at the same time. The dollar is rapidly losing value and this will get worse and worse as more people start to see how worthless the dollar actually is.
