Roche Sharma wrote in the Financial Times that a group of experts mistakenly claim that there is no alternative to the dollar and that growth is coming, ignoring the search by countries under sanctions against Russia for an alternative to the dollar.
“The US currency seems strong, although it has many weaknesses,” Sharma said.
He added that “when the dollar rose to high levels this month that we have not seen in 20 years, analysts began to actively say that there is no alternative to the US currency” and that “new achievements are waiting for the great dollar.” but the events of the past twenty years have shown that the US currency has approached rather than peaked, and that there will be no further growth.
He added: “Even when US stocks began to fall due to the collapse of the Internet companies in the early 2000s, the dollar continued to rise, but then entered a recession in 2002 that lasted six years. So the same turning point is waiting for us now. and this time maybe. The fall of the US currency will continue for a longer time.
He noted that “currencies weaken when the rest of the world thinks that countries with currencies are unable to pay their bills. The United States currently owes the world $18 trillion, or 73% of US GDP, well above the 50% threshold that was often a harbinger of “crises”.
Sharma also emphasized that investors in the world tend to stay away from the dollar when the US economy slows down. In recent years, the US economy has grown much faster than the average of other developed countries, but its growth in the future compared to the rest of the countries will certainly slow down.
Source: Prime