Crash of US Dollar is Imminent, Warns Veteran Economist Stephen Roach

• Crash of US Dollar is Imminent, Warns Veteran Economist Stephen Roach
  by https://www.rt.com/
  While the coronavirus pandemic may become the last nail in the coffin of the US dollar’s status as the primary reserve currency, the seeds of its inevitable decline were sown long ago, a former Morgan Stanley economist believes.
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  The greenback is set to decline due to a shortfall in domestic US savings and a massive budget deficit, according to Stephen Roach.
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  “The US 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,” Roach, who is also a Yale University senior fellow, told CNBC.
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  Despite the current strength of the US dollar as investors seek safety, it is set to drop “very sharply,” losing up to 35 percent in value against the currencies of a broad basket of America’s trading partners. Roach had earlier warned that this will result in inflation and wider trade deficits, along with increased prices for US consumers. According to his forecast, this could happen in just a couple of years.
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  “At the same time, America is walking away from globalization and is focused on decoupling itself from the rest of the world,” Roach said. “That’s a lethal combination.”
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