Zero Hedge: Peter Schiff has been warning about a dollar collapse and now the mainstream is even getting bearish on the dollar.
In response to the economic shutdowns imposed by governments to deal with the coronavirus pandemic, the Federal Reserve is printing money to infinity and beyond. On top of that, it has shifted its inflation targeting to allow inflation to run hot meaning there is no end in sight to the currency debasement. This is bearish for the dollar and an article published by Reuters last month quoted a number of mainstream analysts talking about “dollar woes.”
Goldman Sachs has jumped on that bandwagon, saying in a recent report that “the risks are skewed toward dollar weakness.” Analysts see an increasing likelihood of a Biden victory in the upcoming election.
A ‘blue wave’ US election and favorable news on the vaccine timeline could return the trade-weighted dollar and DXY index to their 2018 lows.”
Opinion: How many dollars can the Federal Reserve/Treasury Department print…
… before the value of of existing dollars breaks?
Economists have been asking that question since 2009 when the Obama administration and Federal Reserve used a maneuver called quantitative easing to bolster the US economy in an dangerous attempt to save the global economy.
The idea was the $4 trillion of new money created would be temporary, and paid back as soon as the economy recovered. It recovered, but the $4 trillion was never paid back.
Fast forward 11 years to March 2020 as the Covid-19 crisis gripped the world and global markets made one of its steepest drops in history. The Federal Reserve printed $6.8 trillion, not counting at least $2 more trillion deposited into banks in the form of repurchase agreements.
The big difference is that this time there is no talk of paying either amount back. So in response to the Goldman headline, how far can the world continue printing money before the global economy breaks, and the only value is in hard currency?
Only time will tell.
The book of Revelation teaches that there will be three economic events that will cause chaos during the 7 year tribulation period. See our paper …
The 1% and Revelation: Do Not Harm the Oil and Wine
You can read about all three here.