The US dollar could severely depreciate against the Euro by 2024, says forex analyst Ulf Lindahl, chief executive officer of A.G. Bisset Associates. He says the greenback is entering the cycle of losses.
The analyst predicts that the dollar will fall to $2 per euro and 75 yen per dollar by 2024, corresponding to 41% and 33% losses, respectively.
Since the 1970’s, the US currency has been repeating a 15-year cycle of losses and gains, and the greenback has now entered the phase of declines.
The dollar has strengthened this year against the euro, trading at $1.16 this month, compared to $1.25 at the beginning of the year.
From the economic standpoint, the following factors for the greenback’s decline: a likely slowdown in US economic growth that will result in a market slowdown, political turmoil, and the dollar’s over-valuation on a purchasing-power-parity basis against almost all major currencies.
China and Japan – the two main holders of the US Treasury securities – have trimmed their ownership of notes and bonds in August. China remains the biggest foreign holder of US Treasuries, followed by long-time US ally Japan.
China’s holdings of US sovereign debt dropped to $1.165 trillion in August, from $1.171 trillion in July, while Tokyo cut its holdings of US securities to $1.029 trillion in August, the lowest since October 2011.
The plunging US dollar will boost gold as a safe-haven demand, you need a $10,000 gold price to make the math work. The Ruble is worth 60% of what it was a few years ago, but the US Dollar is worth about 4% of what it was worth 100 years ago !
RT.com / ABC Flash Point News 2018.