I think the BRICS system is likely. But we will have to wait and see!

China is producing their state owned e-yuan. They are rolling it now and in 2 years that will be the currency most transactions they do will require. 200 million has already been issued as a pilot. When e-yuan becomes the de facto reserve currency of trade, the dollar will suffer thge same tragedy as iceland.

The US will need to take out loans from the IMF, from China, from other nations in ASIA to buy e-yuan. China will pay us back in the dollars they have but will demand e-yuan for anything we want to buy from them. Now the Fed is enjoying its last hurrah. Printing money like its going out of style (which in fact it is) (Actually the Treasury prints the money but they wouldnt print unless the Fed issued bills and bonds to sell.)

When austerity hits home, the rich and privileged classes will have a new 'news bite' with which to beat the 'lazy unemployed'. Helicopter money will disappear. Austerity measures will include wage and price controls (like Nixon did in 1970s), sky high interest rates. And a booming underground economy as Americans learn to dodge taxes like the Greeks do. We will become like England. They were the host state to Arab oil money. We will see China buying up valuable parts of the US simply because we will have nothing else they want. Dont fool yourself, their weapons have reached parity withours. Their chip industry is at most 5 years behind ours. Their ML is at parity with 'ours' -facebook, google. OTOH, facebook and google might just move to china for the free-er capitalism they will have.

To whomever downvoted this comment: Half the worlds transactions are now conducted in currencies other than the US dollar. The world has cottoned to the idea that we are inflating their economies by printing dollars.

I think that in that case the US would just move manufacturing back on shore. It would result in a massive investment boom in the US and the us government would likely print money and provide very low interest loans to fund it. Would result in massive jobs program. I think China would fall in that case as they are massively reliant on the US manufacturing everything there.

> Austerity measures will include wage and price controls (like Nixon did in 1970s), sky high interest rates.

^This is my biggest concern.

Thus far real estate has been my favorite investment. I assume though if interest rates go up peoples buying power and hence prices will go down. If I liquidate my investments I will owe taxes and I fear inflation will eat up the cash value.

Buy e-yuan? Leave the USA?

The Yen isn't a reserve currency, and it's had 0% interest rates for ~30 years.

Why can't the dollar be the same?