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Yale Economist Warns of Dollar Crash

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Peter Schiff has been warning that that real crash will be a dollar crash. Now, some people in the mainstream are starting to sound that alarm as well.

Even before the coronavirus pandemic, Peter was warning about the dollar’s demise. During an interview on RT last September, he warned that America’s “fiscal profligacy” was going to sink the dollar.

What has enabled this over the years has been the world’s willingness to hold US dollars as the primary reserve currency and to continue to loan money to Americans and to the US government so we can continue to live beyond our means. We can have enormous government programs that we don’t pay for and we can consume all kinds of goods that we don’t manufacture, and we can live in an economy based on consumption and debt without having to save or produce. The world has done that for us. And I think this is what’s going to come to an end. I think we’re going to see a collapse in the value of the dollar, and when the dollar does collapse, America’s power is going to dissipate. And Americans are going to have to deal with the reality that we’ve hollowed out our infrastructure; we’ve been living beyond our means. And there’s going to be a day of reckoning for these years of excesses.”

The unprecedented Federal Reserve money printing and the massive borrowing and spending binge by the US government in response to COVID-19 have only accelerated the process. In March, Peter said during his podcast, “I think we’re very, very close to a major collapse of the dollar, a major breakout in the price of gold, to a breakdown in the bond market.”

Peter has generally been a voice calling out in the desert, but it appears some people in the mainstream are starting to see the problem. An article by Yale economist Stephen Roach published by Bloomberg this week echos Peter’s warning about the dollar’s demise.

Roach opens with an ominous warning.

 The era of the US dollar’s ‘exorbitant privilege’ as the world’s primary reserve currency is coming to an end.”

Roach asserts that “US living standards are about to be squeezed as never before,” and warns “a crash in the dollar could well be in the offing.”

Like Peter, Roach says the problem started long before the pandemic. He traces it back to a “profound shortfall in domestic US savings.” With no savings at home, the US has leaned on foreigners’ willingness to loan them money.

Lacking in domestic saving, and wanting to invest and grow, the US has taken great advantage of the dollar’s role as the world’s primary reserve currency and drawn heavily on surplus savings from abroad to square the circle. But not without a price. In order to attract foreign capital, the US has run a deficit in its current account — which is the broadest measure of trade because it includes investment — every year since 1982.”

Roach argues that the rapidly expanding US government budget deficits in the wake of the pandemic are stretching things to the breaking point. Even with a higher level of fear-driven personal savings, it is being outstripped by federal spending. In April, the budget deficit was a full 50% larger than the level of personal savings. According to Roach, that’s bad news for the greenback.

The coming collapse in saving points to a sharp widening of the current-account deficit, likely taking it well beyond the prior record of -6.3% of GDP that it reached in late 2005. Reserve currency or not, the dollar will not be spared under these circumstances. The key question is what will spark the decline?”

Roach believes “America’s sharply diminished global leadership” will exacerbate the dollar’s descent.

As the economic crisis starts to stabilize, hopefully later this year or in early 2021, that realization should hit home just as domestic saving plunges. The dollar could easily test its July 2011 lows, weakening by as much as 35% in broad trade-weighted, inflation-adjusted terms.”

Roach says the decline of the dollar will have three major implications.

First, it will be inflationary. He even raises the specter of stagflation, saying the “tough combination of weak economic growth and rising inflation” could create havoc in the financial markets.

In a recent interview with Mark Dice, Peter was even more emphatic about this threat. “We’re going to have a lot of unemployed people who are going to be paying a lot more money for basic necessities. So, this is going to be stagflation, only the stagnation part is really depression and the inflation can even potentially be hyperinflation.”

Second, Roach said the US trade deficit will likely soar even higher, “effectively taxing beleaguered US consumers.”

And finally, Roach asks a key question: “In the face of Washington’s poorly timed wish for financial decoupling from China, who will fund the saving deficit of a nation that has finally lost its exorbitant privilege?”

Like Covid-19 and racial turmoil, the fall of the almighty dollar will cast global economic leadership of a saving-short U.S. economy in a very harsh light. Exorbitant privilege needs to be earned, not taken for granted.”

As Peter said in a tweet, he’s not the only one who thinks the US dollar will crash.

Get rid of yours while you still can. Buy #gold or invested to good value, dividend-paying foreign stocks before the bottom drops out of the dollar and you can no longer afford to.”

27 Comments on "Yale Economist Warns of Dollar Crash"

  1. Abraham van Helsing on Wed, 10th Jun 2020 3:18 pm 

    Peter Schiff, the gold trader, has been sounding the alarm bells for as long as I know him. At some point, inevitably, he will be “right”.

    Broken clock/twice a day.

    “Roach asserts that “US living standards are about to be squeezed as never before””


    America will be too busy with itself this decade and the formation of multiple new countries on its soil.

  2. Davy on Wed, 10th Jun 2020 4:04 pm 

    “#Slovenia America will be too busy with itself this decade and the formation of multiple new countries on its soil.”

    Tell us how it is so when we get there we will be better prepared. Thanks friend

  3. REALGreen on Wed, 10th Jun 2020 5:08 pm 

    “Slovenia America will be too busy with itself this decade and the formation of multiple new countries on its soil.”

    So true Davy. So true.

  4. zero jaun on Wed, 10th Jun 2020 6:45 pm 

    JuanP on Wed, 10th Jun 2020 5:08 pm

    “Slovenia America will be too busy with itself this decade and the formation of multiple new countries on its soil.” “So true Davy. So true.”

  5. Theedrich on Wed, 10th Jun 2020 10:40 pm 

    America is the land of planeticide. It is a wholly owned subsidiary of the culture of paranoia, Jewry, with its weekly holocaustiana.  Plus, the Yid-Christianity mythos which condemns all Whites to the eternal guilt of “racism” makes it the perfect slave of Kikism.  The cultureless masses of Yankeeland seek release for their anomie and boredom in narcotics and entertainment — the latter supplied largely by cynical Jews, many headquartered in Hollywood.

    The national government is focussed on keeping the herd sedated and on encouraging its descent into subhuman biological species.  Any attempt by foreign nations such as Germany, Japan — or, now, China — to rise above American-style psycho-physical decay is met with the genocide of their populations, as in WW II, the Korean war and, prospectively, China.

    The recent pro-chimpanzoid riots in the U.S. are demonstrations of the true psychodynamic of the country.  The so-called “protesters” were merely Democrat-approved cover for the criminals to pillage businesses and even to kill police.  Their marching slogan:  “What do we want?  Dead cops!  When do we want it?  Now!”

    Politicians such as the grand hypocrite, Mormon Senator Mitt Romney (aka “Pierre Delecto” on Twitter) and queen of the House of Reps, Nancy Pelosi, participate in the anti-White frenzy.  And the Yidbox loves it.

    At the end of May, basement-man Biden told Negro biggies in Wilmington, Delaware, that “The idea that instead of standing there and teaching a cop when there‘s an unarmed person coming at ’em with a knife or something, shoot ’em in the leg instead of in the heart, is a very different thing.”  Yup.  An “unarmed person” attacking “with a knife”

    This is the rot of pre-collapse America.  Not even all the forcs of its military-industrial complex will be able to keep Humpty Dumpty from his great fall.

  6. Davy on Wed, 10th Jun 2020 10:47 pm 

    We liked yer Humpty Dumpty anoligy Thee. We hope you don’t mind if we copied a pasted it on are REAL Lame and REAL Stupid blog.

    Old freind

  7. Davy on Wed, 10th Jun 2020 10:52 pm 

    By the weigh Thee. If you haven’t figgerred it out all ready. zero jaun pink poodle and most of the utter REAL Stupid socks are us.

    Cus Were REAL nutters

  8. REALLY Green Hypocrite on Wed, 10th Jun 2020 11:29 pm 

    Dear Davy,

    Awesome news. An amalgamation of Donald Trump approval polls shows a surge in national disapproval of Trump as his disapproval percentage now exceeds 55% and his approval stands at 40%.

    But I thought you shared with us one of your special polls that you said showed Trump with Black approval of over 40%.

    Liar, liar, Davy’s panties are on fire.

  9. Davy on Thu, 11th Jun 2020 12:01 am 

    “The key question is what will spark the US dollar decline?

    Look no further than the Trump administration. Protectionist trade policies, withdrawal from the architectural pillars of globalization such as the Paris Agreement on Climate, Trans-Pacific Partnership, World Health Organization and traditional Atlantic alliances, gross mismanagement of Covid-19 response, together with wrenching social turmoil not seen since the late 1960s, are all painfully visible manifestations of America’s sharply diminished global leadership.

    As the economic crisis starts to stabilize, hopefully later this year or in early 2021, that realization should hit home just as domestic saving plunges. The dollar could easily test its July 2011 lows, weakening by as much as 35% in broad trade-weighted, inflation-adjusted terms.

    The coming collapse in the dollar will have three key implications: It will be inflationary — a welcome short-term buffer against deflation but, in conjunction with what is likely to be a weak post-Covid economic recovery, yet another reason to worry about an onset of stagflation — the tough combination of weak economic growth and rising inflation that wreaks havoc on financial markets.”


  10. REAL Green on Thu, 11th Jun 2020 12:51 am 

    So true Davy. So true.

    Add to that a nation divided along politicle lines, and a massive problem between those of us with private jets and 500 acre goat and cow operations, and the other 80 percent of Amricans that has sweet fuck all. We got REAL Big troubles brewing. We should have moved to Europe while we had the chance. Were REAL fucked now.

  11. Abraham van Helsing on Thu, 11th Jun 2020 2:50 am 

    Wow, if even Bloomberg is predicting a dollar-crash…

    It looks like that the Heebs are with the back against the wall, in their own estimation. Who would have thought.

    No worries my European-American friends, large in numbers, if you are lucky you will be paying in Euro at some point, the currency of the white race, replacing the kosher FED-dollar.

    A worse fate could befell you.

  12. Abraham van Helsing on Thu, 11th Jun 2020 3:13 am 

    China, Russia and Iran can’t believe their luck and are enjoying every minute of the George Floyd/BLM posse:

    China, Russia, Iran, and other authoritarian regimes have offered wall-to-wall coverage of the Floyd protests and ensuing riots on their propaganda outlets, using the unrest to paint democratic systems as prone to turmoil. The propagandists—as well as top-level government officials—have also exploited the Floyd protests to smear specific pro-democracy or anti-regime movements within their own countries, associating the movements with scenes of chaos and disorder in U.S. cities.

    The spate of propaganda coverage and public statements are indicative of how foreign adversaries are manipulating an American tragedy to delegitimize anti-regime voices in their home countries. This is especially the case for China, as the Floyd protests served as a welcome diversion from the 31st anniversary of the Tiananmen Square massacre and public outcry in Hong Kong, where demonstrators are out in the streets opposing a new national security law that would allow the Chinese government to crack down on anyone conducting what it considers seditious or terrorist activities.

    It’s actually much worse than that, of course. The champions of alternative societal systems of are pointing, very convincingly, to the intrinsic instability and structural contradictions of the current post-Christian, post-European, diverse, multi-racial, multi-religious, multi-cultural West, in order to demonstrate the observable superiority of their more homogenous approaches.

  13. Abraham van Helsing on Thu, 11th Jun 2020 3:32 am 

    You would not have guessed, there is “racial injustice” in the USAF too:

    “Who am I? I am a Black man who happens to be the Chief Master Sergeant of the Air Force. I am George Floyd…I am Philando Castile, I am Michael Brown, I am Alton Sterling, I am Tamir Rice.”

    “This, my friends, is my greatest fear, not that I will be killed by a white police officer (believe me my heart starts racing like most other Black men in America when I see those blue lights behind me)…but that I will wake up to a report that one of our Black Airmen has died at the hands of a white police officer.”

    “So, I spent the last week, “plotting, planning, strategizing, organizing and mobilizing” just as Killer Mike, the popular Atlanta rapper and activist encouraged us to do.”

    “I believe that we have not made much progress in this area of racial injustice and diversity among our ranks. This is why I’m working with General Goldfein, first and foremost to have a full and thorough independent review of our military justice system…We are also working to improve the diversity of our force, especially within the senior ranks.”

    Leave it to the Finegold’s of this world to “reform” everything in the US society according to racial-egalitarian principles, just like their brethren in the USSR reformed society according to economic-egalitarian principles.

    And if you had/have problems with that, here is your free one-way ticket to the Gulag. This time the guards will be “of color”, with their minute brains full with cerebral software, written by George Soros, taking revenge for slavery and other forms of oppression.

  14. Abraham van Helsing on Thu, 11th Jun 2020 4:24 am 

    Nevertheless, there is solid reason not to despair about the outcome of the Bolshevik-2.0 racial revolution that is brewing in the US today. The differences with 1917 are important. The “Russian Revolution” (Russian civil war) of 1917 took place DURING WW1, where all major parties were beating each other to sh*t and in 1918 they were too exhausted to intervene in Russia, although some half-baked attempts were made.

    That is very different this time. Eurasia (EU+Russia+China) is at peace and, as a consequence, more prosperous than ever, outnumbering the US 6:1, assuming the US united that is, a bold assumption.

    Many in the US love to see Europe as their private property, but in reality the EU is merely biding its time. The first athlete who doesn’t want to win the gold medal has yet to be born:

    “‘US losing world leadership, Europe can replace it’ – EU top diplomat Mogherini”

    In China similar thoughts are rampant, mind you vis-a-vis China itself, not the EU. The Chinese sense that they are about to make major geopolitical gains, at the cost of the Anglos. They are targeting Taiwan, the South China Sea, removing the US from East-Asia and eventually Australia:

    The Chinese have repeatedly hinted to the Europeans that China and Europe together could make massive geopolitical gains at the cost of the Anglos. Key factor: New Silk Road over land strategy and closet anti-Anglo:

    “Exclusive: China presses Europe for anti-U.S. alliance on trade”

    Europe declined so far, at least publicly. What diplomats are saying behind the screens is something different altogether though. Churchill and Roosevelt weren’t exactly broadcasting their pre-war talks with Stalin either:

    In Europe the people with brains understand that the American era is coming to a close and the threat is looming of a Chinese era. Even very pro-Anglo Dutch see what is coming and advise to support Macron’s pro-Russian drive:

    Regarding the threat of a racial Bolshevik revolution in the US:

    – white US population is heavily armed
    – the internet exists as a counter force against media
    – Eurasia is biding its time to get rid of empire
    – Mexican government would love to snatch US territory from Washington

    Or as Marx said: “first time a tragedy, second time a face”. This could very well apply to the Bolshevik revolution 2.0 as well.

  15. Davy on Thu, 11th Jun 2020 4:43 am 

    “UK Forecast To Suffer Worst COVID-Driven GDP Hit Of All Nations Worldwide”

  16. Abraham van Helsing on Thu, 11th Jun 2020 5:03 am 

    And there goes the Boy-scouts:

    “‘You’ll have to knock me down first!’: Former Scouts arrive to DEFEND Lord Baden-Powell seafront statue as Bournemouth council is set to remove it ‘on police advice’ after BLM protest over his ‘homophobia, racism and Nazi sympathies'”

    Weak-kneed LibDems (but I repeat myself) have decided that Robert Baden-Powell is a moral good-for-nothing and therefore his statue has to go too. He liked the wrong Germans a little too much, but didn’t like sodomites and pickaninnies. Can’t have that in 2020.

    I myself had a short-career as a padvinder, it was not my thing. The only insignia a nerd like me ever scored was for “reading”; “head-rolls” or “tying knots” was not for me, although I still appreciate that scouting even in 2020 is a VERY WHITE THING:

    (They still have the same camp in the forest like in my days, more than half a century ago. In the Netherlands, every grouping of more than 100 trees counts as a forest)

  17. Abraham van Helsing on Thu, 11th Jun 2020 5:19 am 

    Lord Baden-Powell still alive and kicking or is he?

    Now the talk is that they want to remove the good Lord to “protect him against BLM protesters”.

    The truth of course is that this protection period could be a protracted one, until the onset of Enoch Powell’s (family?) “Rivers of Blood”:

    The dams are about to break in Britain. Continental Europe just got rid of the British just in time.

    In Holland the statue rage is limited to Dutch white left-greens who want to get rid of the statue of Jan Pieterszoon Coen in Hoorn:

    This VOC bigwig wasn’t a “nice guy” indeed, but with nice guys you can’t build a world empire:

  18. Abraham van Helsing on Thu, 11th Jun 2020 6:41 am 

    “Russia wants rapprochement with Europe”

    2016 article, still valid.

    2014: “Putin Confirms Ambition Paris-Berlin-Moscow Alliance”

    2020: “Russian EU Ambassador Offers Europe “Unlimited Cooperation””

    2020: “France Keeps Pushing Reset EU-Russian Relations”

  19. SocialRevolutionComing on Thu, 11th Jun 2020 6:50 am 

    Europe is a shit hole as bad as the US. It is a brown multiculturalism toilet and a globalists shit hole. Europe is about to suffer from to suffer food shortage because of global cooling. Europe is populated with leftard like Abraham. Western civilization is done and have been killed by diversity.

  20. Abraham van Helsing on Thu, 11th Jun 2020 7:13 am 

    “‘You’ll have to knock me down first!’: Former Scouts form ring of steel around Lord Baden-Powell statue as council say it will be REMOVED on ‘police advice’ after BLM protest over his ‘homophobia, racism and Nazi sympathies'”

    – ‘Topple The Racists’ website has named 78 statues and monuments that ‘celebrate slavery and racism’
    – Organisers were inspired by the ‘direct action taken by Bristolians’ tearing down Edward Colston’s statue
    – All 130 Labour councils have promised to ‘review the appropriateness of local monuments and statues’
    – The monument of 18th Century slave dealer Robert Milligan was uprooted from its spot on West India Quay
    – Latest to go will be statue of Scout founder Robert Baden-Powell on Poole Quay. It will be put in ‘safe storage’

    This statue thingy is perfectly suited to initiate an armed conflict between natives and invaders, that eventually should lead to the “decolonization of white lands”, in (almost) perfect symmetry with what happened in the former colonial era, after the Soviet-style downfall of empire.

    7 years ago the statue of Coen in Hoorn (the southern tip of the Americas Cape Hoorn is named after this little town), was attacked with a truck. It was repaired for a lot of money and placed back, with broad support of the local Dutch population:

  21. Abraham van Helsing on Thu, 11th Jun 2020 7:26 am 

    “Europe is a shit hole as bad as the US.”

    It isn’t, what’s your proof?

    US: 320 million, 60% white
    Europe: 640 million, 92% white

    “Europe is about to suffer from to suffer food shortage because of global cooling.”

    Europe, minus Britain, is a massive food exporter. The only vague threat is global warming. Only anglo provincial retards like SRC, the embarrassment of the white race, believe in global cooling.

    “Europe is populated with leftard like Abraham.”

    I wish Europe were populated with “leftist” people like I am as white nationalist as you can get, you dummy. But what does a simpleton like self-styled “high quality whites” (sic) SRC know about anything?

    Anglos like you are the only reason for the current predicament of white people world-wide, the stupid cattle of uncle Schmull.

    “Western civilization is done and have been killed by diversity.”

    Wrong, only Anglosphere is over and done with. Up for grabs by Eurasia and darkies. Continental Europe has thrown the jews out, they will do the same to the diversity, once we get rid of the USofA and clueless idiots like SRC. Together with Russia and China, as well as a US-UK on fire, should be a walk-over. Enjoy WW3/CW2, moron.

  22. CONVICT-19 on Thu, 11th Jun 2020 8:10 am 

    the protests and riots are nothing new. i’m sure supertard president saint davy is not stranger to it.
    but the result needs to be that we’re better off, if not a war to wipe out world muzzie is needed.

  23. Outcast_Searcher on Fri, 12th Jun 2020 1:13 pm 

    Peter Schiff has been bleating self serving nonsense, which has almost never panned out, for DECADES.

    Enough said.

  24. joe on Fri, 12th Jun 2020 1:37 pm 

    Uprooting statues has nothing to do with racism in those parts of the UK which suddenly seem intent on doing so.

    ISLAM accepts slavery, indeed supporting it with a whole host of sharia law of the best way to whip and punish unruly slaves. Islam is also ICONOCLASTIC, they cant make graven images of humans in case they become disloyal to Allah like when they prayed to the golden calf in the desert. Their faith is weak.
    ILHAN OMAR is lying if she claims she is against slavery, toppling statues is about turning the US more islamic . She is either a committed muslim or a socialist hiding behind a hijab. Shes lying about one or the other.
    The left unifying with Nation of Islam and farakan racists is no solution.
    The demand list is vacuous and designed to fail, it’s over ambitious on purpose.

    Anyway on the Brexit front, good to see the EUSSR see sense and accept UKs letter advising them there will be no extension. Macron looking weaker by the day. Merkel is craven about saving the pointless EUSSR and it’s useless underpriced Deutchemark, eh I mean overpriced euro…..
    No need to wait till the end of June now, heads off Labour, snp plots….

  25. Davy on Fri, 12th Jun 2020 3:56 pm 

    “Anonymous Berkeley Professor Shreds BLM Injustice Narrative”

    “An anonymous history professor at U.C. Berkeley has penned an open letter against the current narratives of racial injustice underpinning the BLM movement and ongoing protests over the death of George Floyd.
    Its authenticity was confirmed by Kentucky State University Assistant Professor of Political Science, Wilfred Reilley, who says he was sent a copy of the letter along with Stanford University economist Thomas Sowell. I can confirm that the letter in the thread below was sent to me and Tom Sowell. It’s really worth reading, in a time of widespread panic.
    — Wilfred Reilly (@wil_da_beast630) June 12, 2020″

  26. Davy on Fri, 12th Jun 2020 4:08 pm 

    COVID-19 Political Risk – Dems Say ‘Yes’ To Antifa Protests, ‘No’ To Trump Rallies

    “As hundreds of thousands of Americans take to the streets in protest at systemic racism, capitalism, rich people, Trump supporters, white people, straight people, and civilized people (we are sure we are missing some instigators of violence here), politicians, leaders, and the liberal intelligentsia went out of their way to explain how COVID-19 had become a ‘woke’ virus of sorts. On June 4, more than 1,200 public-health experts signed a letter saying the protests were “vital to the national public health and to the threatened health specifically of black people in the United States…”…as public health advocates, we do not condemn these gatherings as risky for COVID-19 transmission. We support them as vital to the national public health and to the threatened health specifically of Black people in the United States…. This should not be confused with a permissive stance on all gatherings, particularly protests against stay-home orders. ” One protester in Minneapolis even claimed, “Yes, corona is happening. It’s real, it’s deadly. But racism kills way more lives.” We’d like to see the ‘math’ on that one. This hypocritical malarkey was already exposed when considering the rabid reaction to “peaceful protesters” who urged their local officials nationwide to ease the lockdown and let them be free once again. However, Democratic Party hypocrisy just went to ’11’ after President trump announced plans to restart his infamously well-attended rallies. U.S. Rep. Val Demings, D-Fla., said in a tweet this week…The president’s plan to hold mass rallies in Florida and elsewhere as we experience a resurgence in COVID cases is irresponsible and selfish. — Rep. Val Demings (@RepValDemings) June 11, 2020”

  27. Not Davy on Fri, 12th Jun 2020 5:40 pm 

    Davy on Fri, 12th Jun 2020 4:08 pm

    I am commenting on the smart side instead of with you lunatics.

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