The United States needs to take control of its growing debt

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According to former IMF representative Barry Eichengreen, the dominance of the dollar is threatened by the growing debt of the United States, similar to what happened to the British pound sterling in the early 20th century when it plummeted due to high debt levels in the UK.

While the decline of the pound sterling was also partly influenced by geopolitical events, most experts agree that its downfall was mainly caused by the enormous debt accumulated during both world wars, resulting in the country’s debt increasing sixfold to 130% of GDP.

The US debt could reach 181% of GDP within the next 30 years, and the future of the dollar depends on whether the US can effectively control its debt problems.

An economist from the University of California, Berkeley highlighted growing concerns that the dollar may eventually be replaced by competing currencies due to countries like China.