Expert expects collapse of US dollar next year

10:08, 23 November 2020 33
Photo: Zamir Usmanov/Global Look Press

Devaluation awaits the US dollar if the Democratic Party comes to power in the US, said Petr Pushkarev, chief analyst at TeleTrade.

If Joe Biden becomes president, the US could get a swelling trade deficit, he said.

The rapid spread of the coronavirus vaccine in the world will also play its role, which will allow other countries not to ‘run for protection’ to the US Treasury bonds. The US Federal Reserve and its ‘money machine’ are eroding the future purchasing power of the US dollar, the analyst added.

The Trump government has always tried to turn trade flows from Europe and China towards the US, the analyst explains. Biden and his associates can create such a situation that China will be allowed too much.

There are no security resources that could prevent the US dollar’s inevitable devaluation by at least 20-25 percent, Pushkarev added. earlier reported that the euro was the most used currency for global payments last month, the first time it has outpaced the dollar since February 2013.