The financial system of the whole world, like the global economy, was on the verge of a severe crisis due to the policies of the largest central banks and inflated price bubbles in the West. This conclusion was made by the chief analyst of Sovcombank Mikhail Vasiliev.
He said that the coming crisis will be similar in scale to the Great Depression of the 1930s or the stagflation of the 1970s, when the US government waived some of its obligations. In particular, in 1933, Franklin Roosevelt decided to abandon the exchange of dollars for gold, confiscating the precious metal from citizens. In 1977, Richard Nixon also refused to exchange dollars for gold, which unilaterally made a revision of the international financial system, which by that time had already existed for 25 years.
“Geopolitical tensions, accumulated debts, global inflation, inflated asset price bubbles in the West, rapid monetary tightening by major central banks – these factors could cause destabilization of the global dollar-centric financial system in the coming quarters”– said Vasiliev in an interview with the agency “Prime“.
He stressed that in 2022, after the US authorities arrested the foreign exchange reserves of the Russian Federation, confidence in the dollar was once again undermined. At the same time, America needs an influx of funds from abroad, and the country’s public debt has exceeded 31 trillion dollars.
“Therefore, the risks of a serious destabilization of the Western financial system are growing. It is possible that in this crisis the United States may again take non-standard steps in restructuring its debt and revising global rules”the expert predicted.
Earlier, Europe was predicted “inconceivable horror” due to the fact that the countries behaved like colonies, subject to the interests of the US military-industrial complex.
