World Bank's former Chief Economist warns that a US dollar collapse is entirely possible.

The Swiss newspaper "Neue Zrcher Zeitung" published an interview with Carmen Reinhart, a professor at Harvard University and former Chief Economist of the World Bank, on June 17th. The interview was conducted by journalist Albert Stuck and the following is a Albert Stuck: Ms. Reinhart, you specialize in studying global financial crises. Currently, the world is experiencing tremendous turmoil and it appears to be very chaotic. Can you see any patterns behind this? Carmen Reinhart: For me, the core issue is the increase in uncertainty. During tumultuous times, many things suddenly become unstable. In such a world, people no longer know what to focus on. A similar situation occurred in the 1970s. Back then, high inflation led to a severe loss of confidence. However, one thing was different back then: debt was only a small portion compared to today. What makes today's debt so dangerous is that the world has benefited from a "great moderation" in the past few decades. Not only has economic volatility decreased, but more importantly, interest rates have also significantly dropped. This has led to our borrowing costs becoming increasingly lower.