Another possibility can be the emergence of Chinese Yuan as the accepted currency for trade, but that will surely take its time as it not that wide used today. But here also lies a problem. China is holding 26% of US’s debt, so if the US goes bust and dollar crashes, it will surely have an impact on China and on the Yuan. So even this also looks like a problematic area.
The reason I thought the article was foolish, because the author said the flight of capital will happen from developed economies and investors will invest in developing economies such as India. But he forgot one thing that when US became a superpower it created a lot of wealth and when it crashes, it will diminish a lot of wealth with it too. The investors all will have their wealth mostly in US dollar and when it crashes; their wealth will also be eroded overnight. So from where will the capital come to take the Sensex to 60,000?
Whatever might happen, one thing is for sure, if another recession comes and hits US hard leading to it being bankrupt, its ripples will be felt much more in India than last time and future does look gloomy!