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- U.K’s debt-to-GDP ratio is around 85%
- The U.S. national debt is now approx $31 trillion
- Debt-to-GDP ratio in the U.S. is actually higher than 125%
The collapse of the US dollar has been predicted by economist Peter Schiff. Schiff emphasized that the United States is “in a much bigger fiscal mess than Great Britain” and has a much bigger debt problem.
In a podcast that was released on Saturday and was titled When This Sucker’s Rally Ends, the Dollar Will Crash, economist and gold bug Peter Schiff discussed the crashing U.S. dollar. He explained that major issues in the United States will cause the dollar to fall.
Peter Schiff Discusses U.S. Dollar Crashing
Schiff stated that the United Kingdom is concerned about rising debts in reference to the situation in Britain. The economist described how former Prime Minister Liz Truss threatened to send British debt to GDP even higher, noting that investors rightly dumped the pound.
The country’s debt-to-GDP ratio is approximately 85 percent. The irony is that they exchanged pounds for dollars, even though the United States has an even larger debt problem.
The national debt of the United States now exceeds $31 trillion, and the government ran a $1.38 trillion budget deficit in 2022. Schiff clarified that the debt-to-GDP ratio in the United States actually exceeds 125 percent.
Schiff emphasized that it is absurd that individuals purchased U.S. treasuries as a safe haven, and he added that it is also absurd to sell a nation’s currency in response to debt issues and purchase dollars when the United States carries even more debt.
The economist went on to elaborate, stating that there are only two possible ways we can default — the honest way and the dishonest way, but either is a disaster if you own U.S. treasuries.
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Schiff sees two possible ways the United States could default
Schiff went on to say, Simply acknowledging that we are unable to pay is the only way, to be honest. They notify our creditors of the debt restructuring.
He added that the problem gets worse as the Federal Reserve raises interest rates. His statement is a reiteration of his earlier warning that the Fed’s action may result in market crashes, a large financial crisis, and a severe recession.
Also on Wednesday, Schiff tweeted: In September, the merchandise trade deficit for the United States unexpectedly increased by 5.7%, with imports increasing by.8% and exports decreasing by 1.5%. This ended a five-month trend of falling trade deficits.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
