“The start of a new economic crisis in the United States will cause a sharp appreciation of the dollar. Although this prediction seems paradoxical, it has a completely rational explanation. The fact is that during a crisis, most investors intuitively try to invest their money in the most liquid asset.”
Publika.az reports that this forecast Russian economist Mikhail Khazin voiced.
Khazin noted that this status currently applies to the US dollar. If there is a crisis in the stock market in the next 5 years, then the US currency, which is the main currency of the world, will definitely increase in value due to the massive influx of investors.
However, the expert noted that it is not worth betting on such a scenario. This is because no one yet knows exactly when the markets will crash, and it is also unclear how liquid the dollar will be once the financial crisis has passed its peak.
According to him, the global collapse of financial markets may begin this year.
According to experts’ predictions, everything may collapse again in the coming months. Khazin noted that since the beginning of 2022, this is primarily shown by the sharp deterioration of economic indicators in the United States, which is the locomotive of world capitalism and the country with the largest stock market. He said that if the problems start here, it will automatically affect all countries of the world.
According to the expert, the time of the collapse of the markets has been somewhat accelerated by the coming to power of Joe Biden: “If Donald Trump had stayed, even if there was a crisis, the situation would have been more stable, but then everything would have been resolved more smoothly and slowly. After the appearance of the Democrats in the White House, the process has already accelerated. It is impossible to stop the expected collapse.”
Khazin predicted that as a result of a new crisis comparable only to the Great Depression of the 1920s, the US GDP should decrease by 30% in just a few years, which would mean an economic disaster.
The expert believes that the US financial authorities are destroying the greatness of the dollar with their own hands.
According to him, the only way out of the worsening economic crisis for the United States today is the formation of its own currency zone within the borders of the AUKUS military bloc and the initiation of deep internal industrialization within the borders of this union:
“But instead of accepting this as the only correct decision, the American leadership is following the bankers. At the same time, under the pretext of the need to fight the bank panic and financial crisis, they are again filling the country’s economy with emission money.
According to the expert, such a tactic actually sends the dollar to a sharp decline. He believes that the increase in the volume of money in the American economy leads to a rapid depreciation of the US national currency not only within the country, but also abroad.
It should be noted that Mikhail Khazi’s predictions about the 1998 default in Russia and the 2008 global crisis came true.
Akkabay Miradov
#dollar #statement #famous #economist #predictions #turned #Unstoppable
