FX.co ★ Prophets of doom foresee collapse of US economy

American experts are prone to find worrisome evidence in the domestic economy when everything seems to run smoothly. Being the top global economy and the only superpower, it has proved its remarkable resilience for decades. Nevertheless, economists prefer to acknowledge that something goes wrong because a danger foreseen is half avoided. In contrast to Americans, Russians are not easy to spook. They somehow survive despite the complete collapse of the national economy. Remarkably, the underlying reason for concerns among American experts is not frozen assets or a record slump in the GDP but an excessive money supply.

In other words, the Federal Reserve has pumped up humongous liquidity in the US economy under unrivalled stimulus programs. The US currency is getting weaker, thus creating an unprecedented bubble in financial markets, Fox News host Tucker Carlson said. This is what happens when too much cash has been injected into the economy: money is now losing its value. Investors around the world are rushing to convert dollars which are getting cheaper into valuables that could retain their worth in the long term, the journalist added. Besides, he noted that nobody in the US believes that the monetary policy of higher interest rates will curb soaring inflation. No doubt, common Americans are alarmed by the state of affairs in the national economy. It also poses a threat to the global economy. The crash of the US economy will derail the normal pace of development in the global economy. Besides, it will pave the way for social and political turbulence.