Some argue (see “The end of the dollar’s exorbitant privilege” by Stephen Roach, Financial Times, October 5, 2020) that America’s plunging net domestic saving and allooning current account deficit put the overvalued dollar at severe risk. As deficits and debt accumulate further and the currentaccount imbalance deepens, the risk to the dollar will intensify. Do you agree?

The U.S. federal debt, now at $27 trillion, is scheduled to rise a lot further as presidential campaign promises are met and coronavirus-related costs escalate. What are the chances U.S. federal debt will ever be paid off? After all, the president of the World Bank has already proposed debt forgiveness for developing world economies. Is the next step global debt restructuring?

The entire developed world is bogged down in unprecedented levels of debt, the Covid-19 crisis is not over, and the major central banks’ balance sheets have been massively expanded. What is the end game to this global situation in what is still a dollarized world?