https://www.cnbc.com/2020/06/15/dollar-crash-is-almost-inevitable-asia-expert-stephen-roach-warns.html<exerpt>
The stronger dollar era may be on borrowed time.
Stephen Roach, one of the world’s leading authorities on Asia, is worried a changing global landscape paired with a massive U.S. budget deficit will spark a dollar crash.
“The U.S. 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,†the former Morgan Stanley Asia chairman told CNBC’s “Trading Nation†on Monday. “The dollar is going to fall very, very sharply.â€
His forecast calls for a 35% drop against other major currencies.
“These problems are going from bad to worse as we blow out the fiscal deficit in the years ahead,†said Roach, a Yale University senior fellow.
The U.S. Dollar Currency Index is up more than one percent over the past two weeks and is relatively flat so far this year. But Roach believes it’s no time to get complacent.
“The national savings rate is probably going to go deeper into negative territory than it has ever done for the United States or any leading economy in economic history,†he said.
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You know, we can argure the merits of this op-ed, but this and many other impeding "bad things" are possible after POTUS and legislators decided to turn on the Porkulus tsunami fountain of Fedzilla. Some here even poo poo'ed the implications of taking our fed deficit up to $29T. Folks, I can guarantee there will be ramifications for bad economic behavior. There always is eventually.