If the US Suddenly Failed, What Would Be the Impact on the Global System? Global Reset

There are some questions that have been on my mind for a long time. Maybe they are a bit extreme questions. 

For example, one of them is that there was a major disaster in America and America went bankrupt economically. 

This is a disaster scenario, of course. 

Can you imagine what would happen to other countries in the world in such a disaster scenario?

First of all, America is the country that prints the dollar, which is the leading reserve currency in the central banks of many countries in the world. Even though America will never be able to repay these reserve currencies, countries prefer to keep a certain amount of dollars in their vaults, partly to protect their economies against America's imperial ambitions. 

Another reason, of course, is that the price of goods in their international trade is determined in dollars. One of the reasons why dollar-denominated international trade is still preferred is the atmosphere of trust in America. 

As a result, the proceeds of trade are deposited in dollars in the vaults of the central banks of the countries. Even though trade is not directly with the US, this is how the world order is set up today.

In a possible catastrophic scenario, even if they were to turn to America and say take these dollars and give me this in return, I don't know what they could get from America in such a collapse. 

Probably, in such a catastrophic scenario, the dollar will be nothing more than a blank piece of paper, maybe a bundle of dollars that will be useless for nothing more than a little warmth in the fireplace.

And isn't that a huge risk? On what basis does the world today place so much confidence in America?

The fact that inflation in the United States is now well above the expected level is slowly creating an air of panic among the nations of the world. Many countries are already practicing disaster scenarios. 

In the US, the FED is trying to take some measures to combat inflation. The most important of these measures is to raise interest rates, which is one of the orthodox methods, but it is really a mystery whether it will be enough.

Especially during the pandemic, large amounts of money were supplied to the market. Then, with the interest rate hikes, it was tried to prevent the money from fleeing the country. We can say that they were quite successful in this regard. 

Although there is so much financial liquidity in the market for developing countries like us, unfortunately, it was not possible to bring this money to Turkey under favorable conditions. Although the way the country is governed has a great influence on this, I think Turkey's political position in the international arena has also had a great influence. I don't want to go into the reasons too much, but suffice it to say that despite such abundant liquidity, there were major obstacles to the availability of the foreign currency that the country needed on favorable terms.  

So, if there has been such a large money supply, where has this money accumulated now? First of all, the abundance of financial liquidity created during the pandemic is expected to reach the public. We can say that the people, who could not leave their homes and could not contribute to production, continued their daily lives as usual, unlike us, with state support. 

However, a large part of this money was offered as support to companies that had to go bankrupt during the pandemic. Some companies and families who easily obtained financial resources with cheap lending policies probably added wealth to their fortunes.

Let's say you have some savings, you will probably think of converting these savings into some kind of investment in order not to melt them against inflation. For this purpose, some of you will buy gold and put it aside, some of you will utilize your savings in various investment instruments in banks, and some of you will perhaps start a small business in the business world. Some of you may have bought Bitcoin to multiply your savings several times over in the crypto world. Although this investment has disappointed its investors recently, I think many of them have found it appropriate to invest their savings with such investments.

In fact, I can even say that the stock market has recently become the most lucrative investment instrument for investors.

I will not say anything in this article about fixed and low-income people who barely survive their daily lives. That is a completely different subject.

As I said, such investments are valid for those who have some savings, which we call small investors.  

But what if you have a very large financial savings?

Imagine, you have a huge financial power that you can direct at the snap of your fingers. 

Either you are rich as a family, you have many years of savings under your control, or you have built a successful business worldwide with the means of the last few years and have amassed a huge amount of wealth. Or, as I mentioned earlier, you were able to make a fortune from the liquidity supplied to the market during the pandemic, perhaps with a little luck, perhaps with your great commercial acumen.

These large accumulations have a huge impact on the direction of many markets. I have written an article on hot money before, and in that article I touched a little bit on this subject.

There are many fund managements in the world, even the Catholic Church has a huge amount of financial power. The various investments made by these funds play a very big role in directing the world economy. Funds can even impose their own conditions for their investments. In recent years, for example, environmentally sensitive funds, which we call green funds, can even force countries to find a solution to global warming. Of course, this is one of the positive effects of big capital. 

But all these funds, including the families with large financial savings and the shining rich of recent years, are blowing a breath of fresh air into the balloon that is already inflated with their initiatives to add to their money.

There are many things that are being done. 

Most recently, someone I call a global charlatan has even taken over social media. 

I don't know, what did he have against Twitter, which I haven't really enjoyed since it came out, which I don't use much, and which I only check every now and then to see who is saying what, that he felt the need to buy this social media? He probably wanted to set the rules himself. Because Twitter was not a medium with a huge financial return.

In this and similar ways, those who have great financial power can constantly try to intervene in our lives. 

And many of them do it without showing themselves as publicly as those in the public eye. Quietly, but they influence the masses with what they do. But at the same time they are constantly blowing on the balloon. The balloon gets bigger and bigger every day.

What if one day the balloon bursts?

Even though the US, and even Europe, which is following in America's footsteps, and other countries that have joined the bandwagon, are trying to take some measures to recover the financial liquidity that has been dispersed, I think the money is now concentrated in certain hands.

These big financial actors are unconsciously pushing to get richer and richer, driven by the dream of adding to their fortunes without thinking that the inflating world economic bubble might burst. They keep inflating the bubble without ever feeling the point of saturation. 

Some may be more innocent in their thinking. Maybe some of them are just trying to protect their existing wealth. 

But it seems to me that all the wealth holders, including those like them, as I mentioned at the beginning of this article, are trying to pull a stone from the foundation of America's collapse every time. The burden of such a huge distribution of wealth will eventually come back to haunt America. If confidence in the dollar disappears, then we can say that this is the beginning of the inevitable end. The signs of the inevitable end are already becoming clear. 

Yes, I started this article as a disaster scenario, but I titled it as a global reset. 

If the bubble bursts one day, which it will eventually at this rate, then the system may have to be rebooted from scratch, just like in computers.

There is nothing that mortals like you and me can do about it. I don't think even Turkey can do anything in such a catastrophic scenario.

We can only take some precautions now to protect ourselves from the global effects of such a situation. And that would be the kind of measures where we can say that we will be buried under the rubble anyway, but at least let's stay alive. Because naturally we have to adapt to global integration in our own way.

As I said, we are perhaps one of the countries that could be most affected in such a disaster scenario. Because we are really economically dependent on foreign countries.

Even though this is something we are forced to do in today's world with the winds of globalization, I think it does not prevent us from taking some precautions now to at least become a self-sufficient country as we once were.

In short, it seems to me that the world is moving as fast as possible towards a global reset.

I think it is useful to take our precautions now. Let's sit together and think about what the precautions should be, let's see what ideas will come out if we think together.

Love and respect to everyone from Moscow