USA can see economic crisis in coming years: Analyst predict

Analysts predict that a significant economic crisis may strike the US in the next few years, given the internal and external threats to the US dollar from the BRICS nations.

One research firm in particular thinks that bullish investors are missing the warning signs that the US dollar may be in danger during this economic crisis.

Beacon Economics, an independent economic research firm based in Los Angeles, predicts a crisis involving the US dollar.

The company claims that excessively high levels of consumer spending are being driven by the massive federal deficit and overvalued asset markets. Although that might be beneficial for the US economy’s current growth, it will eventually cause issues.

“These issues began long before the pandemic struck, but actions by the Fed in response to the crisis have made the nation’s long-run economic situation significantly worse. Their decision to firehose an extreme amount of new money into the economy expanded US money supply by 40% in an 18-month period – show me a nation that wouldn’t see a surge in spending and prices after such an aggressive increase,” Christopher Thornberg, founding partner of Beacon Economics said, Watchguru reported.

The battle with inflation has been a major factor in the recent decline of the US dollar. This conflict adds to the concerning forecast for 2030. The US Dollar is concerned about the BRICS alliance’s expansion, though.

The US dollar is obviously under threat from the BRICS nations, and Sergey Lavrov of Russia recently stated that the dedollarization process is unstoppable. Following those discussions and decisions, the organization seems more resolute than ever.

This year, rumors of a BRICS payment system under development began to circulate. Iran recently reaffirmed its intention for the payment system to link the central banks of the entire group. Such measures provide the bloc the ability to keep reducing its reliance on the US dollar. which might have a significant impact on the currency.