Slowly, but surely Russia, China and other emerging economies are beginning to reduce their dependency on the US dollar. Russia plans to trade oil using rubles by undermining the current US oil price monopoly.
"That would begin de-dollarizing the world oil trade in a significant way," Engdahl told Sputnik.
This move would be a dramatic blow to the economy of the United States and break the US political hegemony, Engdahl explained.
To make things even worse, the US economy is already struggling.
"The rest of the world is beginning to realize that the United States of America, the hegemon or the sole super power, whatever you want to call it, is de-facto bankrupt," the political expert told Sputnik.
With US industries outsourced to other countries, unemployment shooting through the roof and trillions of dollars of debt, the US economy is in a terrible shape, Engdahl said.
JP Morgan analysts were less dramatic than Engdahl, but even they agreed that the chance of the US economy slowing down over the course of next few years increased by 75 percent. While the global economy is expected to grow by 2.6 percent in 2016, the US economy would likely slide into recession.
