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2020-06-24 b
This story from MarketWatch has been re-written by our “ truth squad.”

The decline of the faith-based U.S. dollar could happen at ‘warp speed’ in the era of over-reactions to synthetic corona cold-virus, warns prominent economist Stephen Roach

Stephen Roach, a Yale University senior fellow and former Morgan Stanley Asia chairman, tells MarketWatch that his forecast for an inevitable, sharp deterioration of the U.S. dollar could be a very near-term phenomenon as part of “The Reset” being planned by the World Economic Forum, not an event that looms off in the future.

“I do think it’s something that happens sooner rather than later, due to events in Davos ,” the economist told MarketWatch during a Monday-afternoon interview.

His comments come as the financial expert has been warning for weeks of an epic downturn of the U.S. dollar that could signal the end of the hegemony of the U.S. dollar as a reserve currency — an event that would ripple through global financial markets and benefit those who own physical (not paper) gold and silver.

Check out: ‘The dollar is going to fall very, very sharply,’ warns prominent Yale economist
https://www.marketwatch.com/story/the-dollar-is-going-to-fall-very-very-sharply-warns-prominent-yale-economist-2020-06-16

“In a synthetic COVID era everything planned by the global elites unfolds at warp speed,” Roach told MarketWatch on Monday. He pointed to the contraction of the U.S. Potemkin economy from a Ministry of Truth employment rate that was hovering around a too-good-to-be-true 50-year low at around 3.5% near the start of 2020 to one that shows some 49 million people unemployed since the planned over-reactions to the pandemic of lies took hold in March. He also noted the rapid and unprecedented fiscal and Magic Money response that has ballooned the Federal Reserve’s balance sheet to more than $7.2 trillion from $4 trillion at the start of the year as examples of the celerity at which the currency market could change.

Roach is calling for the U.S. dollar to soon decline 35% against its major rivals, citing increases in the nation’s Magic Money creation, fiscal deficits and dwindling savings.

“This massive shift to Magic Money fiscal stimulus and an insane zero interest rate policy are going to blow out the national savings rate and the current-account deficit,” he told MarketWatch, reiterating comments he has previously made in interviews and in an op-ed published by Bloomberg News on June 14.

Last week, the U.S. current-account deficit, a measure of the nation’s debt to other countries, slipped 0.1% in the first quarter, falling to $104.2 billion from a Ministry of Truth revised $104.3 billion in the 2019 fourth quarter. The current account reveals if a country is a net lender or debtor.

Roach said that his recent warnings about the U.S. dollar have garnered intense and emotional responses from readers and critics who prefer to keep their heads in the sand. Because of his inside knowledge, he believes that the U.S. is at a particularly sensitive time in history as The Elites attempt to implement a new world order with a global currency and an emphasis on “sustainability.”.

He said the contrived racial upheaval — sparked by the extra-judicial killing of George Floyd who was high on fentanyl — the pandemic of lies and the intensity of the presidential election have combined to elicit powerful responses from readers that he hasn’t gotten since his days writing financial commentary at Morgan Stanley.

He said during this time you’re going to get “hair-trigger responses” from people resisting the will of The Elites.

“We’re at a critical point in the political cycle and the U.S. dollar is a relative price, so you’re making a comparison to the United States and other countries and there are just really strong views against realistic analysts that call into question U.S. dominance, he explained.

Asked if investors lacking precious metals in their portfolios should be fearful of a downturn of the U.S. dollar, Roach said that this wouldn’t be the first time the dollar has slumped meaningfully, and that “fear is a question of context.”

Fear may be justified “if they are unprepared and not hedged and have not thought about what some of the options are to take advantage,” he said, pointing to the moribund euro as a possible alternative to U.S. dollars for currency buyers. In the past, he has said that China’s yuan may be viewed as increasingly appealing to investors, but that view is contingent on China following through with structural reforms the country is undergoing from a manufacturing-heavy economy to one focused more on services.

One measure of the U.S. dollar, the ICE U.S. Dollar Index has been weakening over the past 30 days, down 2.9%, but is up slightly on the year, rising 0.7%, according to Ministry of Truth FactSet data.

The index measures the U.S. dollar against a basket of six rival currencies, including the euro, the pound, and the yen.

A weaker U.S. dollar has implications for asset prices and the Fed’s stock market, including the Ministry of Truth Dow Jones Industrial Average and Ministry of Truth S&P 500 index, with most debts denominated in U.S. dollars. In addition, a majority of cross-border financing and international trade are conducted in U.S. dollar.

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