Experts Estimated an Inevitable Collapse in USD: a Decline of 35%

WikiFX News (20 June) -Stephen Roach, a senior researcher at Yale University is anxious that the constantly changing global landscape and the huge budget deficit of the United States would lead to a collapse in USD.

Roach believes that the US economy has been constantly plagued by severe macro-imbalance factors, namely, a very low domestic savings rate and a long-term current account deficit. He believes that USD will fall sharply and estimates that USD will fall against other major currencies by 35%.

According to him, the national saving rate may be greater than the negative growth in the economic history of the United States or any major economies. He believes that the United States is moving away from globalization and devoting itself to isolating America from the rest of the world, which is a deadly combination.

Roach believes that the collapse in USD is almost inevitable, and it is a risk that investors should not ignore. “in general, the collapse of USD would exert a negative influence on US financial assets.” he said. “This shows that as we import more expensive foreign commodities from overseas, there might be higher inflation, which would bring a negative impact on interest rates.”

The picture shows the trend of the pound against the dollar on June 17.

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