Nouriel ‘Dr. Doom’ Roubini Warns About Demise of US Dollar

Economist Nouriel Roubini, known as “Dr. Doom,” warns of the demise of the U.S. dollar and the rise of a “polarized” world. Roubini believes that new technologies such as central bank digital currencies (CBDCs) and corporate payment rails will contribute to the new landscape, and that China’s renminbi may become an alternative to the dollar.

Nouriel Roubini predicts the fall of the greenback

Nouriel Roubini, an economist known for his accuracy in predicting the 2008 housing crisis, warns about the rise of a “bipolar currency system” that could precede the collapse of the U.S. dollar as a world currency. The Iranian-American economist, also known as “Dr. Doom” for his pessimistic predictions, warned readers in an article about the replacement of the US dollar with the Chinese renminbidue to a series of actions the Chinese government has implemented since the Cobid shutdown.

Mr. Roubini stated.

Some argue that de-dollarization will accelerate given the increasing weaponization of the dollar for national security and the growing geopolitical conflicts between the West and revisionist countries such as China, Russia, Iran, and North Korea.

Roubini mentions the U.S. government’s increasing series of restrictions on the use of the dollar, including primary and secondary financial sanctions against rival countries, as a possible reason for the emergence of this bipolar system over the next decade.

aggravating factors and efforts to de-dollarize

Roubini also argues that the pseudo-adoption of the dollar by less-developed economies brings disadvantages stemming from the domestic control of monetary policy. Thus, these countries would be at a disadvantage, having no say in issuance or currency management decisions. Roubini states.

The current system makes emerging market economies financially and economically vulnerable to changes in US monetary policy due to domestic factors such as inflation.

The economist also noted that Saudi Arabia already uses Chinese yuan to settle its transactions, and other countries in the region may follow this example.

There are already several projects aimed at replacing the dollar in international payments: in July, the BRICS countries announced that they were working to create their own currencies to eliminate the influence of the United States and the International Monetary Fund on their economies; in January, Argentina and Brazil’s presidents announced that they would begin working on a common currency that would serve as a means of payment between Mercosur and the BRICS countries.

launch of the Central Bank Digital Currency (CBDC), expanding the use of private payment la.