Will the U.S. Dollar Collapse in 2016?

Will the U.S. Dollar Cause a Stock Market Crash in 2016?
Although the stock market grew at a rapid clip in recent years, 2015 is shaping up as a tipping point for the economy. Growth sputtered to a near standstill by the middle of the year as the economy was plagued by a bundle of problems. Tectonic forces beneath daily market movements continued raising fears of a U.S. dollar collapse in 2016.
There are two main factors that could trigger a U.S. dollar collapse. China could achieve reserve currency status for the yuan, undermining the relevance of the U.S. dollar and U.S. stock markets could crash. Again.


Think of how the world is changing. Since the 2008 stock market crash, asset prices were buoyed by easy money from the Federal Reserve. Stock markets soared as investors regained their confidence. But that confidence came at a steep price.
The Federal Reserve spent more than $4.0 trillion preventing both a stock market crash and the U.S. dollar collapse. Unfortunately, quantitative easing wasn’t meant to last forever.
The Fed finally wound down their bond buying program last year, injecting a strain of worry into stock markets. We’ve seen that strain grow into a full-fledged panic this year, with markets gyrating wildly through the summer.
Why are they panicking? Well, the short answer is that monetary stimulus is nearly at an end.
But what does that mean for U.S. stock markets? Does it necessarily signal a U.S. dollar collapse in 2016? The answers are far from clear, but there are legitimate fears of an economic collapse. At the very least, a stock market crash is virtually guaranteed.
Consider this; at the same time the Federal Reserve is wrapping up its monetary stimulus, we’re seeing a massive reordering of global power. China has evolved from being a regional power to a heavyweight on the international stage.
Russia successfully annexed Crimea and Eastern Ukraine without any practical opposition from the West, and Iran has been admitted back into the community of nations. The world has changed a lot in a surprisingly short while.