Raul Pal described the mechanism of the new global financial crisis.
Raul Pell, who previously held the position of hedge sales chief at Goldman Sachs, an American bank, believes that the abnormal growth of the dollar against most monetary units in Asia means that the classical world of finance faced serious imbalances when a peak in dollar issuance not to the fall of its course, but rather to its strengthening.
Could it be that this is all to do with the dollar breaking out versus all the Asian currencies, in the biggest technical break in the history of FX markets? (Chart lower = $ higher). pic.twitter.com/fzFSXFDCUm
– Raoul Pal (@RaoulGMI) August 31, 2019
The analyst believes that we are talking about the fact that panic is growing among large investors who are clutching at any opportunity to save their money and are now in search of the best object for self-insurance ( hedging ) of various risks.
According to his estimates, in two years the holders of bonds of the US Treasury Department will receive a negative income of 4%, that is, they will record losses. The analyst is sure that at present we are hearing the “swan song” of the US dollar, since after a decrease in the yield of the US government debt for zero, a fundamental reassessment of the role of the American dollar in the world will take place, moreover, on a practical plane.
He is convinced that the central banks of a number of countries have already begun to look for an alternative to the US dollar, preparing for the apocalyptic scenario at the rates of return on US government debt.
As a result, in a world in which there are already sovereign obligations of different countries in the amount of $ 17 trillion, causing losses, the volume of such securities will double, and in a short time. Already, according to his estimates, investors began to actively invest in Bitcoin (BTC) , as gradually disappointment with traditional hedge instruments such as gold is growing.
Publication date 09/03/2019
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