Charles Nenner, a veteran financial expert who was head of Market Timing for Goldman Sachs for more than a century, has recently warned about the end of US Dollar hegemony and the consequences it could have for the US. According to Nenner, this could lead to a flight of safety from US Treasuries and other assets.
Charles Nenner Foresees Dollar’s Demise
Charles Nenner, a financial cycle analyst and former Goldman Sachs executive, predicts that the US dollar is on its way out. In a recent interview with USA Watchdog, Nenner said:
I said that the dollar was going to be strong, but it isn’t anymore. It’s a very serious situation. It’s not necessary to hold the dollar.
The analyst believes that the BRICS bloc, comprised of Brazil, Russia, India, China, and South Africa, could be aided by Saudi Arabia and be able to break the dollar’s hegemony as a global reserve currency.
Nenner explains that exports may benefit from a weaker dollar in the short-term, but the economy will suffer in the long-term. He said:
The economy is going to really suffer. If the dollar goes really low, we could have a small bounce in the economy because it’s good for exports. That’s just a fooling bounce for people. Longer term, it’s just finished.
Implications of the Dollar’s Fall
Nenner proposes that the fall of the US dollar will lead to other nations running away from US Treasuries and running for safety in other assets such as silver and gold. He said:
We are going to get a bad dollar. That usually means that people will dump their securities. If China, Russia, and other countries decide to dump their US bonds, then we will be in trouble. I am worried about a possible run to safety.
China is the largest holder of US government bonds, with 867 billion dollars. Other analysts, such as Jeffrey Tucker, have recently said that the US currency is at a turning point and will no longer be the king currency. Nouriel Roubini also suggested that the global economy is shifting into a system of bipolarity, with the Chinese yuan being an alternative currency to the US dollar.
What do you think about Charles Nenner’s predictions? Let us know in the comments below.
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