Economist Peter Schiff Warns of US Dollar Devaluation and ‘Biggest Economic Disaster’ in History – Economics Bitcoin News
As an affiliate, we may earn from qualifying purchases. We get commissions for purchases made through links on this website.
Receive $10 in Bitcoin when you buy or sell $100 or more on Coinbase! https://mathisenmarketing.com/coinbase
Renowned economist Peter Schiff has recently sounded the alarm bells warning of the United States dollar’s potential devaluation and the possible impending economic disaster that could follow. Schiff is well-known for his conservative economic theories and his past predictions, particularly regarding the 2008 financial collapse.
According to Schiff, the government’s response to the COVID-19 pandemic and the resulting economic recession may have laid the groundwork for a weaker dollar. He argues that the Federal Reserve’s increased quantitative easing – basically printing more money – to stimulate the economy may lead to inflation and the devaluation of the dollar.
Schiff warns that such a devaluation could result in the dollar losing its status as the world’s primary reserve currency. If that happens, it would mean that other global powers would no longer hold as much faith in the dollar and would start looking to other currencies or assets for exchange and store of value.
Schiff also claims that the falling dollar could trigger what he calls “the biggest economic disaster” in history. In an interview with Kitco News, Schiff said “ We will have a currency crisis and a sovereign debt crisis, it will be one for the record books.”
Schiff’s sentiment echoes that of many other prominent economists who’ve been sounding the same alarm for a while now. Critics argue, however, that their warnings may be too pessimistic and that the US dollar’s dominance as the global reserve currency is unlikely to fade anytime soon.
According to data from the International Monetary Fund, the dollar remains the world’s leading reserve currency, accounting for more than 60% of global foreign exchange reserves. And while China’s renminbi is slowly gaining ground – accounting for over 2% of global foreign exchange reserves – the transition to a different world reserve currency could take years or even decades.
Many proponents of the cryptocurrency space argue that the rise of digital assets like Bitcoin may provide a solution for those seeking alternatives to traditional fiat currencies. Bitcoin’s decentralization and the limited supply specifically may make it attractive as a global reserve currency. However, it’s a long-shot given Bitcoin’s current limitations to scale and its speculative nature.
In conclusion, Schiff’s warnings regarding the US Dollar’s devaluation and possible economic fallout should not be ignored entirely. But it’s impractical to predict with certainty the timing and magnitude of such a disaster. As always, those seeking to protect themselves must diversify their portfolio, invest in assets with intrinsic value and not put all their eggs in one basket.
Receive $10 in Bitcoin when you buy or sell $100 or more on Coinbase! https://mathisenmarketing.com/coinbase
Source link
