Economist: A trade war with China will cause the collapse of the dollar.
The economist Peter Schiff already predicted the global economic crisis of 2008.
The idea that a trade war between China and the United States could strengthen the dollar is "totally absurd" and, in fact, could lead to the depreciation of that currency, according to the economist, investor and broker Peter Schiff in his opinion. official YouTube channel.
This specialist believes that those who believe that this policy will generate a deficit of the US budget, will devalue the dollar and, in the long term, benefit that currency are not right.
That's because the US treasury bonds they would have to ensure excess liquidity when there is no difference between dollars and treasury bills, so while the US Federal Reserve would "reduce" its balance, Washington would "expand" it.
Thus, while the supply of dollars would continue to grow, the demand for dollars would be reduced and this could cause a "massive inflation" in the US.
Peter Schiff already predicted the global economic recession of 2008 and the American financial crisis as a result of the bankruptcy of its banks and the mortgage crisis, a bankruptcy that had serious repercussions in the global economy. In recent times, this economist has also repeatedly warned about the future collapse of the dollar.