The dollar will crash under the staggering weight of its debt!
In fact, “The dollar is going to fall very, very sharply.” That’s what Steven Roach says. He’s very concerned.
We wrote about Roach last week (Dollar Breakdown Ahead!), calling him “a pretty sensible guy.” That was when he told Bloomberg News that “US living standards are about to be squeezed as never before.”
Well, that’s what happens when your currency crashes.
Now Roach has taken the message to CNBC, where he said his forecast calls for as much as a 35 percent drop against other currencies.
If Roach is right, the price of gold will skyrocket!
“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,” said Roach, a Yale professor and former chairman of Morgan Stanley Asia.
““These problems are going from bad to worse as we blow out the fiscal deficit in the years ahead,” he says. He points to the Stagflation Decade of the 1970s as a model for what to expect: weak or negative economic growth combined with rising prices.
That’s the worst of both worlds!
The following chart shows the collapsing purchasing power of the dollar over 300 years by comparing it to gold. You can see a bad crash of the dollar during the Civil War era, one from which it recovered when gold was restored to the monetary system.
The next dollar crash came with FDR’s gold grab in the 1930s. That was followed by the crash when Nixon abandoned the gold standard in 1971.
There isn’t much that lawmakers and Washington can do about the new dollar crash, says Roach.
But you can do something for yourself. Take steps to protect yourself and your family with gold and silver. Speak with a Republic Monetary Exchange precious metals consultant today