Loading ...There can only be two possible final outcomes to the current global economic situation. On one hand, the rest of the world can lose trust on the credit of the dollar not just because its GDP will lag behind the rest of the world but because of its ultra low interest rates. This would cause a push to trade commodities and reserves to be held in a currency outside of the dollar causing the US to freefall leading to hyperinflation. On the other hand, foreign equity markets will be so overbought that its interest rates will have to move significantly higher to encourage investors to remain in its local currencies. This would cause an eventual recession in emerging markets bringing the global economy to another correction. The only difference is that the US would be leading the world out of the second and deeper recession. […]