- Yale Economist Warns of Looming Dollar Collapse
by SCHIFFGOLD, https://schiffgold.com/
Peter Schiff has been warning about a looming dollar collapse. During an appearance on Fox Business in July, Peter said the dollar isn’t just going down, it’s going to crash.
“I think the dollar is going to keep drifting down until it collapses,” Peter said. “And this is going to usher in a real economic crisis in America, unlike something we’ve ever seen.
Peter is not alone. In a recent article published on SCMP.com, Yale economist Stephen Roach said he expects the dollar to plunge by as much as 35% next year. Roach lists three factors he thinks will ultimately doom the dollar.
“This reflects three considerations: the rapid deterioration in macroeconomic imbalances in the United States, the ascendancy of the euro and renminbi as alternatives, and the end of the aura of American exceptionalism that has given the dollar Teflon-like resilience for most of the post-World War II era.”
Roach called the confluence of an erosion in domestic savings and the current account deficit “nothing short of staggering.” The national savings rate has entered negative territory for the first time since the 2008 financial crisis, coming in at -1% in the second quarter. According to Roach, a temporary surge in personal savings due to the pandemic and government stimulus checks has been more than outweighed by a record expansion in the federal budget deficit.