When will Dollar collapse as the world reserve currency?

[Mr Khan]

LiquorandGunFun said:
by 2016 if not by then then at 2020. Then a mass succession.

The US government cant stop printing it and borrowing on it like morons. Tells other morons "raising the debt ceiling doesn't make more debt" -Prez Dingle Barry himself.

Let's stop and have a brief lesson about the Liquidity Trap. The macroeconomy under the regime of the Central Banks functions under their ability to set interest rates. When you want to have economic growth, the best way is with low interest rates, which will create less incentive to save your money and more incentive to spend it. At the same time, it makes borrowing easier for all market players. The Liquitidy Trap occurs when you've punched interest rates as low as they can go but external market conditions (consumer and business confidence and factors that influence them) still have not rebounded. At this point, the only way to effect a meaningful change and stimulate spending is to create inflation, and not only that, but to create expectation of inflation (which helps to weaken the exchange rate). As such, in a Liquitidy Trap, currency collapse is patently impossible (unless the country's debt is denominated in a currency other than their own, or in gold, a la Weimar Germany, which messes with the math of it all)

In the case of the United States, QE can go on infinitely until significant inflation actually kicks in, as could endless government spending.