‘It’s going to pop’: Major warning to Biden-led America

Joe Biden will inherit a nation grappling with a sovereign debt crisis and a dollar that will “drop through the floor”, leaving other world economies like Australia better off, a prominent US financial broker has predicted.

Speaking to Yahoo Finance, Euro Pacific Capital CEO and global strategist Peter Schiff said the US Government had been driving itself into debt for years, and US asset prices would crash during Joe Biden’s presidency.

 

“The US economy has been a bubble for many, many years. And they've been passing the baton from administration to administration,” he said.

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But each passing administration made the debt problem worsen further, including outgoing US President Donald Trump.

Debt under Trump has ballooned to US$26.9 trillion. He added US$6.7 trillion to the country’s debt since Obama’s last budget. At the end of Obama’s presidency in 2017, the debt was US$20.24 trillion, according to The Balance analysis of White House papers.

“For all the talk from President Trump about draining the swamp and making America great again, he did neither. All he did is perpetuate the bubble that he inherited, and it's bigger than ever,” Schiff said.

“But I think it's going to pop. I think the chickens are going to come home to roost under Joe Biden.”

And if they do, we’ll see the US dollar plummet – dramatically. “We're finally going to see the dollar collapsing the way it did during the Bush administration.”

During George W Bush’s time in office, the US dollar fell to an all-time low of 71.30 on 17 March 2008 according to the dollar index during the global financial crisis.

Source - https://au.finance.yahoo.com/news/peter-schiff-013511042.html