CNBC: A dollar crash is virtually inevitable, Asia expert Stephen Roach warns
The stronger dollar era may be on borrowed time.
Stephen Roach, one of the world’s leading authorities on Asia, is worried a changing global landscape paired with a massive U.S. budget deficit will spark a dollar crash.
“The U.S. economy has been afflicted with some significant macro imbalances for a long time, namely a very low domestic savings rate and a chronic current account deficit,” the former Morgan Stanley Asia chairman told CNBC’s “Trading Nation” on Monday. “The dollar is going to fall very, very sharply.”
His forecast calls for a 35% drop against other major currencies.
Read more ....
WNU Editor: I recall President Trump talking about the debt levels that needs to be reached before this becomes a serious problem. I cannot find a link to his remarks, but he basically said that when the Federal debt reaches $30 trillion and the economy is not growing .... the U.S. dollar status as a reserve currency will be under strain. He gave a prediction that this will need to be solved by 2030. Unfortunately .... the pandemic has changed everything, and the problem is now. This is why Stephen Roach is predicting a crash if nothing is done to charge up the economy and make it grow at levels that can sustain this debt exposure.
0 Response to "Is A U.S. Dollar Crash Inevitable Because Of Its Massive Debt?"
Post a Comment