Markets Will Correct Heavily – Alasdair Macleod

• Markets Will Correct Heavily – Alasdair Macleod
  by Greg Hunter’s USAWatchdog.com (Saturday Night Post)
  Finance and economic expert Alasdair Macleod says watch interest rates and the U.S. dollar set the direction for the markets in 2021.  Macleod explains, “You can see how, through interest rates, the future of the dollar is actually tied to the future of financial asset markets.  If you get a pop in the bubble, and there is no doubt equity prices are wildly overvalued compared to the economic outlook. . . . Quite honestly, there is no alternative but for markets to correct very, very heavily.  When that happens, you are going to have portfolio outflows out of the dollar. . . . The effect of that will be to take the dollar down along with financial asset prices. . . . We can get the collapse of the dollar happening very, very rapidly.”
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  Macleod says the money printing we are seeing now globally is on a scale and pace never seen in world history, and at the center of it all, is the U.S. and the new administration in Washington, D.C.  Macleod says, “From last March until today, we can see a total of $8 trillion worth of QE (money printing) required to pay for all the programs, and that includes Biden’s. $1.9 trillion, which I know has not been authorized—yet.  The figures are enormous.  There is absolutely no way that the dollar can hold its value with that level of money printing.  That’s just to deal with Covid.  Biden also wants to finance green spending . . . . How much more spending on top of that goodness only knows.  The thing is a mess, and it’s not just America.  When I look at Europe . . . they are incompetent . . . and when you get an incompetent government like that, forget it.  The Eurozone banks are on the verge of bankruptcy, I mean beyond insolvency.  They are on the verge of bankruptcy.  How do you handle a situation like that when you’ve got an incompetent bunch of bureaucrats at the top?  This is going to happen, and I am surprised it hasn’t happened yet.”
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