America’s national debt is not the problem (that just means how much the government has spent and not collected back in taxes yet), the problem is that wealth is concentrated in the hands of the 1%. The problem with America is private debt owed to private creditors, which the US government refuses to and will never write down (because they don’t want to hurt the feelings of the private creditors).

Dollar is not going to become worthless. The dollar is not going to collapse. It will continue to be the reserve currency for a very long time to come. I sincerely hope that people don’t buy into the myth spread by goldbugs and Bitcoiners, many of whom believe that the dollar is going to collapse.

Michael Hudson explains the real trouble with adopting the dollar in Argentina:

William asks, I live in Ecuador, which uses the dollar, the US dollar. What are the pros and cons of changing back to its own currency? The sucre, I hope I’m pronouncing that right. Also, Argentina has several exchange rates for its peso: the official rate, a parallel unofficial rate, a rate for the agriculture sector for soya exports.

Some want Argentina to get rid of the peso and use only the dollar as in Ecuador. Is that a good idea?

Hudson: That’s a destructive idea. Argentina used to use the dollar. What that means is that for every dollar of its currency, Argentina has to obtain these dollars.

How does it obtain these dollars that it’s going to use as its currency? Either it exports more grain or beef, or it sells off its public domain. It sells off its land, it sells off its public utilities to get the dollars.

Using the dollar, or any foreign currency, means that it has to essentially give exports and sell its economy for nothing, just to use the foreign dollars that it could use itself. Same thing with Ecuador. Ecuador did have a left-wing president but you had him replaced by a right-wing person that said all of Ecuador’s export proceeds have to be turned over to the US Treasury for its international spending, mainly on war. Ecuador is going to give its entire economic surplus to finance America’s Cold War.

Argentina, the right wing there says, let’s use our surplus to finance the Cold War. Let’s not create our own economy. We have to create, we have to maintain austerity here if we really want to crush the working class and the agricultural class and prevent the economy from getting rich, so that we can lord it over the rest of the economy.

That was discussed way back in their failed dollarization policy of the 1990s. And it’s the same thing. No country should borrow in another country’s currency as Argentina and Ecuador did. They can’t simply create their own credit.

If you use dollars, then the government can’t do what we were just talking about. If you use dollars as your currency, you can’t just print them to spend, because you can’t create dollars. Only the United States can create dollars. And if you use your own currency, pesos or whatever, then of you can create as many as you want, which is the way things should be.

So using the dollar is giving up national sovereignty. And one of the classic definitions of a state is: a state has the power to create its own money. Giving up that power means that Argentina and Ecuador are not states. They’re colonies. Financial colonies and monetary colonies of the United States, not independent states.