Author: Tom Gauld
this post was submitted on 10 Oct 2024
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Comic Strips
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Oh, yes it would. The global economy flows entirely through the US dollar as a reserve currency. If it goes, everything goes. China can't sell anything to Europe, Europe can't buy oil from the Middle East, and the Middle East becomes a power vacuum. Given time, these could be worked out, but not before their governments collapse.
That's why BRICs have been looking to disentangle themselves from the USD, even to the point of floating the idea of their own currency union. That's a terrible idea for other reasons (it'd let China put a noose around the other three), but there's a reason behind it.