The US Dollar Collapse is Imminent and there will be global economic catastrohpe when it is rejected as the currency for trade, former Malaysian prime minister Mahathir Mohamad said on Tuesday.
The US dollar was retaining some value because of fears of a global economic catastrophe if it was rejected, he told a conference of some 650 chief executives from 30 countries at a conference in Kota Kinabalu on Borneo.
"But the catastrophe will come one day because even the most powerful country in the world cannot repay loans amounting to seven trillion dollars," Mahathir said.
He said, Central banks worldwide were reducing their US dollar reserves and he suspected that Malaysia was also switching to other currencies.
The huge deficit meant that the US dollar had no backing but it continued to be used internationally because some people still accepted payments in US dollars, he said.
"But there will come a time when we will switch away from the US dollar and we have suggested the use of gold for international trade," he said.