The US has neither earned nor deserved the “exorbitant privilege.”
Stephen Roach –
"A Crash in the Dollar Is Coming"
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– Flash Points –
1 – The USD’s status as global reserve currency is nearing its end.2 – The balance of power is shifting away from US hegemony.
3 – Dollar collapse will ultimately wreak havoc on the economy.
– Synopsis –
In a recent article on Bloomberg.com, Stephen Roach, senior fellow at Yale University’s Jackson Institute for Global Affairs, warned that the “exorbitant privilege” that the US dollar enjoys – given its status as the world’s reserve currency – will soon end.
Shift and Crash
Triple Whammy
The collapse of the dollar will have 3 repercussions. First, it will result in inflation that “wreaks havoc on financial markets.” Second, the US trade deficit will soar, with the consequent protectionism hurting American consumers. Third, China will no longer want to fund the US’s savings deficit.– Insight from Outside –
The US has neither earned the “exorbitant privilege” it has held for the past 60 years, nor deserved it. Moreover, its abuse of that privilege puts it in a very tenuous position.Over-Privilege is Over