Expert: US Economy Cannot Be Restored Without Destroying Global Dollar System

The global dollar system needs to be dismantled, and there is no way around it, believes Russian economist and publicist Mikhail Khazin.

In his view, this is due to the fact that a significant part of the US economy is virtual in nature. Therefore, as long as returns on financial markets are higher than investments in the real sector, the US economy will not recover. And tariffs on imports imposed by Trump will not serve as a lifeline.

Mikhail Khazin, economist, publicist (Russia):

"On November 5, 2014, at the Dartmouth Conference in Dayton, Ohio, I stated that there are two basic scenarios for the United States. Either save the dollar financial system, but at the cost of the complete destruction of the real American sector. Or save the real sector, but then the global dollar system must be destroyed. When Trump came to power in 2016, he tried to save the real sector of the American economy without destroying the global dollar system. It didn’t work out. Currently, it’s even unclear whether the American real sector can be saved, as it has fallen significantly since 2014. But still, the global dollar system must be destroyed — there’s no getting around it. As long as it exists, and as long as returns on financial markets are higher than investments in real sectors, there will be no recovery."