The famous American economist Stephen Roach predicts that the dollar will fall sharply in the next year or two, and assets such as Bitcoin and gold will have a significant opportunity at this point.
Bitcoin and gold could take advantage of this, stating that the investment in the giant Morgan Stanley, ex-Asian president Stephen Roach, will lose the value of the US dollar significantly.
Speaking at CNBC, Roach described the world, which is changing rapidly in the midst of the epidemic, with the country’s huge budget deficit as well as the country’s efforts to slow down globalization.
Anticipating the end of the world’s reserve currency, Roach thinks it is time to warn investors about a possible dollar collapse.
“The US economy has long been under the influence of some major macro imbalances – very low domestic savings rates and a chronic current account deficit.” The American economist says that these problems are getting worse than bad with the leaps in the budget deficit.
“The national savings rate, adjusted for depreciation, will probably go deeper into the negative region,” Roach said later. At the same time, America is moving away from globalization and focusing on separating itself from the rest of the world. I think this is a deadly combination. ” He commented that the dollar would drop very, very sharply.
The economist estimates that the dollar could easily test its lows in 2011, and could drop up to 35 percent in the next year or two.
In an article published in Bloomberg, Roach states that investors should take advantage of the weakness of cryptocurrencies and gold while seeking a hedge against collapse: “These markets are too small to absorb major corrections in the currency markets, where the daily volume is $ 6.6 trillion.”