{"id":41887,"date":"2018-12-21T15:31:12","date_gmt":"2018-12-21T20:31:12","guid":{"rendered":"https:\/\/olduvai.ca\/?p=41887"},"modified":"2018-12-21T15:31:12","modified_gmt":"2018-12-21T20:31:12","slug":"is-u-s-dollar-on-the-verge-of-a-major-currency-crisis","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=41887","title":{"rendered":"Is U.S Dollar on the verge of a major currency crisis?"},"content":{"rendered":"
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Is U.S Dollar on the verge of a major currency crisis?<\/a><\/h3>\n<\/div>\n
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According to the founder of the world\u2019s largest hedge fund, Ray Dalio the US dollar could soon fall as much as 30%<\/a> which could leave it looking like the Turkish Lira. The chairman of Bridgewater Associates, Ray Dalio has warned that the US economy is on the verge of a major currency crisis due to the unaffordable buildup of debt.<\/div>\n<\/div>\n<\/div>\n<\/header>\n
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Dalio warned recently in an interview through Bloomberg that the US might have to go through a similar type of inflationary debt crisis which is currently being suffered by emerging market economies like Argentina and Turkey.<\/p>\n

Triple-digit inflation<\/a> has taken countries around the world by storm in 2018. Argentina, Iran, Turkey, Sudan, Yemen, and Zimbabwe currently have annualized inflation at the hundred and 111%, 187%, 38%, 127%, 27% and 170% and that\u2019s not even mentioning the total destruction of the Bolivar in Venezuela.<\/p>\n

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The United States currently has unprecedented debt levels which have been exacerbated thanks to the Federal Reserve artificially propping up the economy through a zero interest rate environment over the past decade. The access to easy credit has allowed consumers to blow up asset bubbles since the financial crisis of 2008.<\/p>\n

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Ray Dalio\u2019s ideas about the US dollar has come from his recent book \u201cA Template for Understanding Big Debt Crisis\u201d in which he analyzes 48 historical debt crisis in order to show how they took place.<\/p>\n

He states that most debt crises are very similar although Dalio distinguishes between those that are \u201cinflationary\u201d and \u201cdeflationary\u201d.<\/p>\n

\u201cWhen it is denominated in a foreign currency, like these countries, which have a lot of Dollar-denominated debt, then they can have a problem servicing that debt. When the Dollar goes up they don\u2019t have enough cash and they get into that spiral of printing money which devalues their currency and makes it even harder to meet their debt obligations,\u201d<\/em> Dalio says.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Is U.S Dollar on the verge of a major currency crisis? According to the founder of the world\u2019s largest hedge fund, Ray Dalio the US dollar could soon fall as much as 30% which could leave it looking like the Turkish Lira. The chairman of Bridgewater Associates, Ray Dalio has warned that the US economy […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1976,195,18792,426,7888,19021,839],"class_list":["post-41887","post","type-post","status-publish","format-standard","hentry","category-economics","tag-currency-crisis","tag-debt","tag-gold-telegraph","tag-inflation","tag-ray-dalio","tag-tom-lewis","tag-us-dollar"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/41887","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=41887"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/41887\/revisions"}],"predecessor-version":[{"id":41888,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/41887\/revisions\/41888"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=41887"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=41887"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=41887"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}