Without further complicating the subject, let’s get directly to the crisis of 2020. Is Corona virus collapsing the markets? The simple answer is no. It is a contributing factor to the culminating crisis. The world has known Ebola, bird flu and swine flu but none of them grounded flights, closed airports and forced full lockdowns.  

What is happening? 

The current crisis which is gaining momentum daily is the answer to this question: When will the bubble burst? I mean the world unprecedented debt accumulated by central banks since 2008 financial crisis  

With the advent of globalization, everything has become global. Debt, crises and viruses have become global. Sharing is caring.  

Back to the title of this post, who is going to be in the driver seat? America or China. What is the relation between 2020 crisis and the title of this post. It is inseparable. The world ‘factory, China wants to go first. Russia has wakened up and wants its share as well. Transacting in dollars and servicing the American debt are no longer in the Chinese and the Russian interests. The American debt empire is doomed. 

Who will lead the world?  

History teaches us that wars throughout history were not waged for the sake of fighting, but for more dominance and control. Out of the ashes of World War II, the US put the rules. Dollar was crowned the world’s reserve currency. All countries accumulated reserves of U.S. Dollars. The end of gold as an international standard in 1971 and the creation of the Petro-dollar standard instead of gold in 1973 have enhanced the American hegemony.  

The US is a unipolar and does not like the notion of “sharing the pie”.  

The current financial crisis which already started is about preserving the dollar status. The problem is that it is non-preservable.  

Handing over leadership to China and Russia is to kill the dollar. 

Dethroning the dollar and making Yuan the world’s reserve currency is a nightmare for the US. At the surface, it is very complicated, but it is who unilaterally runs the world. Multi-Bubbles are to be burst in 2020. Oil price wars and corona are the sharp pins that will burst the real bubble, the global debt bubble.

In the 1973, dollar was reenthroned on oil when it was dethroned from gold in 1971.  

China and Russia are killing the Petro-dollar and Petro-yuan is the most viable alternative. Dollar as the world’s reserve currency is unsustainable.

Out of the ashes of World War II, America set the rules, who will set the rules this time? 

Will the US reset the global monetary system and create new rules. The only problem for the US is that it is no longer a uni-polar.  

Will there be a war to preserve the empire?  

Wars are not only militarily waged. All sorts of wars meet the end. Economic, biological, psychological or all of them.