Investment manager Larry Lepard has warned that the US dollar could lose most of its value within five to 10 years. After the start of the war between Russia and Ukraine, “USA. The US did something that I perceived to be very stupid, which is to say, it seized $600 billion of Russian foreign exchange reserves and sent the message to every other country in the world that ‘Hey, if the US doesn’t like what you are doing, they can take your money’”, described the executive.
Investment manager expects US dollar to lose most of its value in 5-10 years
Larry Lepard, investment manager and founder of Equity Management Associates (EMA), shared his prediction for the falling US dollar in an interview with Kitco News, published on Wednesday. He said:
I am very comfortable saying that the US dollar will effectively restructure or have lost most of its value within 10 years, and I think quite frankly it could even be shorter than that. My median estimate is about five years.
The executive then explained how he came up with his prediction: “I’m based on looking at history and other currency events in other countries and looking at patterns of how long it takes.”
Lepard explained that after the start of the Russia-Ukraine war, “the United States did something that I perceived as very stupid, and that is, it seized $600 billion of Russian foreign exchange reserves, and that sent the message to all the other countries in the world.” world that ‘Hey, if the US doesn’t like what you’re doing, they can keep your money.’” He added:
That started us on what I see as the next round of currency debasement…and now we are watching the bubble of everything slowly but surely deflate.
The investment manager proceeded to discuss inflation. “We have a lot of inflation and unfortunately it is only going to get worse,” he emphasized. For safe-haven assets, he recommends gold and bitcoin, as he considers them “sound money.”
Lepard continued: “The average investor in the United States has been told, ‘Buy stocks, buy bonds, don’t worry about the currency.’ I think it’s a big blind spot because I think the coin has a big, big risk of serious downgrade, and that the average investor who’s in a 60-40 portfolio, if they don’t have gold and they don’t have bitcoin, they’re really going to suffer. in the next 10 or 15 years”. He further warned: “If they have a lot of bonds, they’re going to disappear because I think the chances of bonds maintaining their real purchasing power are extremely low.”
Noting that politicians change the rules to suit them, such as when they bailed out Silicon Valley Bank and Signature Bank, Lepard warned that “you can’t trust a word,” say those who control fiat currency “because everything they do is designed”. to stay in power, to keep the system that puts money in their pockets running.” However, he stressed that every time those in power change the rules, “more and more people wake up” and look for alternatives to the US dollar.
What do you think of Larry Lepard’s warnings and predictions? Let us know in the comments section.
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