Goldman Sachs Warning: The US Dollar Is In Danger

It’s been just revealed that Goldman Sachs issued a warning involving the US dollar.

The company said that it could be on its way of losing the status of the world dominant currency.

A warning to investors

In a new report cited by Bloomberg, Goldman Sachs is warning investors that the US fiscal policies could significantly slash the value of the dollar in the long run.

As you probably know by now, there have been $2.8 trillion added to the Federal Reserve’s balance sheet this year and there’s also another round of stimulus measures on their way.

The firm said that Wall Street is becoming increasingly worried about the economic outlook of the US.

“The resulting expanded balance sheets and vast money creation spurs debasement fears,” according to the notes cited by the online publication the Daily Hodl.

The notes continue and say that “[This could create] a greater likelihood that at some time in the future, after economic activity has normalized, there will be incentives for central banks and governments to allow inflation to drift higher to reduce the accumulated debt burden.”bitcoin table courses finance virtual crypto - Goldman Sachs Warning: The US Dollar Is In Danger

The report also noted that as the inflation concerns are growing, investors are turning to safe-haven assets such as gold. It’s also worth noting the fact that Goldman Sachs increased their gold price forecasts by around 15%.

The same online publication mentioned above notes that gold proponent Peter Schiff has something to say about BTC and hedges.

“Inflation results in higher prices for goods. Since gold is a good, its price rises along with the price of other goods, preserving its relative purchasing power. Since Bitcoin is not a good, its price does not relate to the price of other goods. So it’s not an inflation hedge.”

On the other hand, Bitcoin has been growing a lot in popularity this year, and more people are seeing a safe haven in the coin.


Trending news

Top Exchanges
Top Casinos
Icon
7bitcasino

4.20

Website

Icon
BitStarz

5

Website

Icon
FortuneJack

4.55

Website

Top Sportsbook
Icon
1xBit

4.03

Website

Icon
Nitrogen Sports

4.73

Website

Icon
SportBet.io

4.60

Website

Andreas Townsend Author

I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.

1961 Articles

Top Exchanges
Top Casinos
Icon
7bitcasino

4.20

Website

Icon
BitStarz

4.93

Website

Icon
FortuneJack

4.90

Website

Top Sportsbook
Icon
1xBit

4.03

Website

Icon
Nitrogen Sports

4.73

Website

Icon
SportBet.io

4.60

Website

Trending news