Lebanese Ministry of Information
THE US is heading for a dollar disaster 10 years after the financial crash – which might end its economic domination of the world.
Daily Star
Tom Towers
15 September, 2017
Tomorrow marks the 10th anniversary of the 2007 disaster, when wages froze, house prices tumbled and cost of living soared, with millions still feeling the effects.
The US is now on the verge of a similar collapse which could endanger global markets and drag Brits into economic freefall.
Euro Pacific Capital CEO Peter Schiff told Daily Star Online: “I think we’re heading to a dollar crisis and a sovereign debt crisis. It’s going to be different than what happened in 2008 which was a loss of confidence in the private sector, mortgage backed securities and the banks.”
Amid the chaos, the US government bailed out financial institutions in a bid to rescue the desperate situation
Schiff added: “That was the wrong thing to do because it enabled the Federal Reserve to create an even bigger bubble than the one that burst in 2008.”
“Now we’re on the precipice of a bigger decline but this time it’s not just the private sector, it’s the foreign market, the dollar.
Schiff believes the weak currency will soon create a crisis in bonds, which are loans issued by the government to raise money from its citizens.
He said: “Then the US government will have to make a choice: default on the national debt or destroy the dollar. In the interim we’re going to have a serious downturn.”
The Central Bank has insisted there will be no crisis but Schiff believes it is unavoidable.
He added: “This one’s too big, there’s no bailout, there’s no way out of this.”
However, this time the US crisis may not have a drastic effect on the rest of the world – depending on how countries react.
Britain and other major economies could benefit greatly if they simply let the dollar fail, Schiff claims.
He added: “As the dollar goes down and Americans become poorer, we buy less stuff. That means there’s more stuff for everyone else because they can outbid us.
“The rest of the world will do better with a weak dollar.
“When it becomes a problem is when foreign central banks panic and start printing out money to stop the dollar from falling.
“Simply let the dollar fall then the US will just be stuck with the consequences of the weak dollar: higher interest rates, higher prices, a lower standard of living, recession.”
Another US expert believes the next financial crash may ALREADY unknowingly be under way and warned of the impending crisis.
Businessman Jim Rogers told Daily Star Online: “In America we have had economy problems every four to eight years since the beginning of the Republic. It’s been nine years since the last one so we’re overdue.”
“In 2008 we had a problem because of too much debt, now the debt is much, much, much higher everywhere in the world.
“The next time we have a financial problem it’s going to be the worst in your lifetime.”
It was also revealed today that Brits are £20,000 worse off since the last crash.
Comparing a range of household expenses from a decade ago to today, uSwitch.com found that despite household income increasing by over 2% in the 10-year period – it is down by a shocking 33% since 2007.
The dramatic fall is due to the 20% rise in all household costs, with gas bills shooting up by 58% and electricity bills and water bills increasing by 42% and 27%.
