The US government's response to the crisis caused by the COVID-19 pandemic has only accelerated this process. Previously, Peter was alone in calling for the future collapse of the US dollar, but now everything seems to be changing. An article by the Yale economist Stephen Roach, which was published on Bloomberg, confirms Peter's earlier concerns.
Roach claims that the collapse of the US dollar is inevitable. Americans are waiting for the strongest change in living standards. Roach is afraid of the growing deficit of the US state budget. And the situation after the pandemic, this value is at a critical point. And even with this dynamic, they are ahead of Federal spending.
"The coming collapse in saving points to a sharp widening of the current-account deficit, likely taking it well beyond the prior record of -6.3% of GDP that it reached in late 2005."
- Stephen Roach, economist
- According to the author, the fall of the dollar will have three big consequences.
- The first is inflation. An oversupply of currency will lead to a sharp increase in unsecured prices for goods and services
- Second, the trade deficit will impose additional tax obligations on customers.
- Third, in trying to get rid of China, the main financing of the American debt is lost
Earlier, Peter called for abandoning the US dollar in favour of buying gold and stock.
- Source, The Tradable
