Who said there is no truth in Pravda?
An article appeared today in Pravda.ru entitled: “USA has two options to save its economy: declare default or trigger off war”:
Inga Foksha, an analyst with Aton Investment Company, agrees that the US default is quite possible, although she is certain that it will not happen unless the world finds an alternative to the US dollar. The dollar will collapse immediately in case of default, which is absolutely unacceptable, because 63 percent of world reserves are saved in dollars. Their collapse will trigger the global economic collapse.
While the analysis is quite good, they have the title wrong. It should read:
The USA has but one option: declare default and trigger off war.
The US Dollar, as a fiat currency, is on track to losing all credibility. The United States of America is already practically bankrupt. And since “63 percent of world reserves are saved in dollars”, the Federal Reserve’s action to dilute the value of the dollar by issuing irrational amounts of new money without any kind of capital to back it up will act to offend the holders of that 63 percent. Anyone who thinks it will all be taken lying down is kidding himself.