Posted Jun 23, 2020 by Martin Armstrong
QUESTION: Good morning from Greece Martin!! It will be very interesting to have your comment on Steven’s Roach interview at CNBC about an upcoming dollar collapse due to the ballooning US deficit.
My respect for your job,
ANSWER: This is the typical myopic nonsense. All they ever do is look at the quantity of money and focus exclusively on the United States. There is a dollar shortage because around the world people fear their own governments. About 70% of all paper dollars are outside the USA. With the prospect of Europe canceling their currency and their inability to sell debt, they will push to convert all debt to perpetual bonds without notice; the dollar will be the LAST to crack. Make no mistake about it — the dollar will crack for that is the Monetary Crisis Cycle. But this comes in stages.
These economists look at domestic numbers and always rely on the Quantity Theory of Money, and they have been dead wrong ever since 2009. The dollar would crash if Trump lost the election, for then the Democrats would join the socialists of Europe. Pelosi already tried to slip in the “digital dollar” in preparation of also canceling the currency to enforce raising taxes.