By Sean Kelly
Invest in Gold and Silver Now and Beat the Rush!
Steven Roach is concerned with the US national savings rate. Very concerned. And he is convinced that the US is giving up the “exorbitant privilege” of being the world’s reserve currency.
The result will be a sharply lower standard of living for the American people. Not in some bye-and-bye far-off time, but next year.
Professor Roach is the former Chief Economist of investment banker Morgan Stanley. He has been an official of the Federal Reserve. He is now a lecturer and senior fellow at Yale.
In a piece this month in The Financial Times, Roach writes, “A crash in the dollar is likely and it could fall by as much as 35 per cent by the end of 2021.”
Roach points to the US trade imbalance and the plunging US savings rate, now in negative territory, as reason for his warning that a major dollar crash is looming.
A shortfall in US domestic savings has long been apparent.
“The current account deficit in the United States, which is the broadest measure of our international imbalance with the rest of the world, suffered a record deterioration in the second quarter,” he said. “The so-called net-national savings rate, which is the sum of savings of individuals, businesses and the government sector, also recorded a record decline in the second quarter going back into negative territory for the first time since the global financial crisis.”
We last wrote about Professor Roach last June. (See It’s Not Just the Smart Money Moving to Gold! Now it’s the Big Money, Too!)
We said at the time that “Roach’s hair has practically been on fire lately as he has made the rounds of financial television programs trying to warn people that “the dollar is going to fall very, very sharply.”
Since then, the evidence for Roach’s prediction continues to gather. “We’ve got data that’s confirmed both the saving and current account dynamic in a much more dramatic fashion than even I was looking for,” Roach said recently on CNBC.
“The national savings rate is probably going to go deeper into negative territory than it has ever done for the United States or any leading economy in economic history,” said Roach.
He warns that “US living standards are about to be squeezed as never before.”
Gold and silver, the time-tested money of the ages, are your safe havens when currencies begin to wobble and fall.
Beat the rush. Speak with us today about protecting your family and your future with gold and silver.
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