ABOUT US  |  CONTACT US  |  RSS  |  ARCHIVE  |  2020-08-10  |  UPDATED: 1399/05/19 - 15:20:5 FA | AR | EN
Loya Jirga Approves Release of 400 Taliban Prisoners             íLess Than 5,000í Troops in Afghanistan by Late Nov: Esper             Whatís Behind Trump Election Delay Proposal?            The donation of the blood plasma from HWPL is a great sacrifice, the messages sent            Iraqi PM orders swift investigation into deadly Baghdad protest            US mayors urge Congress to block Trump federal deployment against protesters            Malaysiaís ex-PM Najib Razak found guilty on all corruption charges            Armed resistance sole way to end Saudi-led war on Yemen: Ansarullah            Russia intercepts another US spy plane over Black Sea            North Koreaís nuclear weapons deter another war on country: Leader Kim             Fossil fuel industry supporting US police groups cracking down on protests            Trump national security adviser Robert OíBrien has Coronavirus             Protests in Portland enter 60th day with no sign of stopping            Political activists worry about aspects of impending Afghan peace talks            US-occupied Iraqi base struck by three rockets: Reports            


DATE PUBLISHED: 1399/05/04 - 12:40:2
VISIT: 275
SHARE WITH YOUR FRIENDS

íBlow-Upí Event Could Crush US Dollar as Multi-Trillion Debt Mounts, Ex-IMF Deputy Head Warns
íBlow-Upí Event Could Crush US Dollar as Multi-Trillion Debt Mounts, Ex-IMF Deputy Head Warns

The US Congress is currently mulling a new round of support for the American economy during the pandemic, that cost would at least $1 trillion if agreed by the Democratic-led House of Representatives and Republican-led Senate. However, such a fiscal stimulus may also create additional risks for the American currency.

Former IMF deputy managing director Zhu Min has warned about the possibility of some triggering event that could potentially crush the US dollar as American national debt continues to rise, according to his comments to the South China Morning Post.

While the US Federal Reserve is currently pursuing an aggressive monetary policy of quantitative easing, Congress just stepped up its efforts to support the American economy during coronavirus pandemic, with the House of Representatives already approving a $3 trillion stimulus package in addition to the $2 trillion support act passed in March.

These new stimuli are yet to be supported by the Senate which is mulling a smaller $1-trillion-package. However, these measures together create a risk for the stability of the dollar as a global currency, the Chinese economist warns, as the US national debt recently reached a record-breaking $24.22 trillion.

"The concern isnít whether the US dollar will see an accumulated decline of 30 percent in the future, but whether there will be a blow-up event that causes a sudden loss of confidence in the US dollar, and its market to collapse", Zhu suggested.

Zhu, who is currently heading the National Financial Research Institute at Tsinghua University in Beijing, suggested that the current low interest rate environment made global businesses much more vulnerable compared to the 2008 financial crisis. Even with the US Federal Reserveís aggressive monetary support, the companies may still require more time to adjust to a new reality, and itís not clear whether all of them would stay afloat.

"So, the question of whether there will be a financial crisis will depend on whether a major company will be the next to go bankrupt, and thereby result in a jump in the corporate default ratio, leading to a sovereign debt crisis", Zhu added.
Zhu Min, who served as Deputy Managing Director of the IMF from 2011 to 2016, also held senior positions at the Bank of China from 2003 to 2010, and then as Deputy Governor at the Peopleís Bank of China.

The United States moved to introduce widespread national lockdown measures in late March, which significantly halted economic activity and sent unemployment to an unprecedented rate of 14.7% in April.
In March, Donald Trump signed the $2.2 trillion CARES Act set to help stimulate the American economy with forgivable loans to small business, multi-billion dollar aid for large corporations and one-time cash infusions to individuals. The unprecedented-in-its-scope legislation amounted to 10% of US GDP, and, according to estimates, has added nearly $2 trillion to the public deficit for the period 2020-2030.

 

SOURCE: SPUTNIK

LINK: https://www.ansarpress.com/english/19681


TAGS:






*
*

*



SEE ALSO

US Pledges $36.7M for COVID-19 Response in Afghanistan


Proposed union deal with BA involves cuts of at least 270 jobs and 20% in pay


Face masks compulsory in shops in England from Friday


US on collision course with a double-dip recession: Leading economist


US oil regulator targets Saudi, Russia over excessive crude dump on US markets


South Korea enters recession as exports plunge by most since 1963


Afghan exports arrive in India after borders reopen


Iran to launch special trade office in China: Businessman


EU summit: Leaders reach landmark Ä1.82 trillion COVID-19 recovery deal and budget


Virus-hit UK economy slumps almost 20% in lockdown





VIEWED
MOST DISCUSSED




POLL

Modi, Merkel Discuss Afghanistan, Radicalisation And Terrorism

SEE RESULT


LAST NEWS

Barakah Power Plant; New UAE Security Weak Spot

Loya Jirga Approves Release of 400 Taliban Prisoners

íLess Than 5,000í Troops in Afghanistan by Late Nov: Esper

Whatís Behind Trump Election Delay Proposal?

The donation of the blood plasma from HWPL is a great sacrifice, the messages sent

Iraqi PM orders swift investigation into deadly Baghdad protest

US mayors urge Congress to block Trump federal deployment against protesters

Malaysiaís ex-PM Najib Razak found guilty on all corruption charges

Armed resistance sole way to end Saudi-led war on Yemen: Ansarullah

Russia intercepts another US spy plane over Black Sea

North Koreaís nuclear weapons deter another war on country: Leader Kim

Fossil fuel industry supporting US police groups cracking down on protests

Trump national security adviser Robert OíBrien has Coronavirus

Protests in Portland enter 60th day with no sign of stopping

Political activists worry about aspects of impending Afghan peace talks

US-occupied Iraqi base struck by three rockets: Reports

Rare Hawaiian hurricane brushes islands

English Premier League: Leicester City 0-2 Manchester United

Taliban seek to control aid agencies, private companies in Afghanistan

Afghanistan Cricket CEO sacked for Ďmisbehaviorí

One Killed, Two Wounded in Kabul Blast

MBRKA to be awarded to entities fighting epidemics

Eight in 10 Americans believe country headed in wrong direction: Poll

Saudis take madrassa-building spree to Afghanistan: Report

Rohingya refugees feared dead found alive on Malaysian islet

Indiaís Modi to lay foundation stone for Hindu temple at site of demolished mosque

Diplomatic tensions: China confirms closure of US consulate in Chengdu

Reversal of quarantine for travelers from Spain causes a sense of ďpanic and loss of controlĒ

American flag lowered at US consulate in Chengdu: China state media

Afghan govt. under criticism over alleged pandemic budget misuse

Hanna pummels Texas coast with strong winds, heavy rain

Over 60 killed in fresh violence in Sudanís Darfur: UN

Portland Black Lives Matter protesters clash with armed federal agents

Israeli military says its drone crashed in Lebanon

Trump banned from using Reaganís name to raise money for 2020 vote

Afghan Army Chopper Makes Emergency Landing in Helmand

Taliban political chief warns US to withdraw as per Doha agreement

Anti-Netanyahu protesters violently attacked as thousands rally against Israeli PM again

First hurricane of 2020, Hanna, roars ashore in virus-hit Texas

Tunisia appoints new prime minister


MEDICAL NEWS


ANSAR PRESS ©  |  ABOUT US  |  CONTACT US  |  MOBILE VERSION  |  LINKS  |  DESIGN: Negah Network Co.
All right reserved. Use this website by mentioning the source (link) is allowed. ›—ś‘ź«Ś «یš —š ی šŕŠ»šŌ«š