Fitch’s rating downgrade of US treasuries will soon hurt the US economy, according to the experts.
Its Impact on the US Dollar
They also stated that this downgrading will act as a catalyst for Global de-dollarization. Fitch has downgraded the US Treasury from AAA to AA+.
Fitch Ratings is considered one of the top credit rating agencies in the US. Soon after Fitch released the ratings, the White House and Treasury Secretary disagreed with them.
Globally, there is an increase in the number of nations that are trying to decrease their dependence on US dollars. This action is a reaction to the sanctions imposed by the US on Russia, and nations blame the US for weaponizing its currency.
The BRICS countries are leading this movement by using their local currencies for cross-border payments. There are also reports that the BRICS will soon launch their currency that can replace Dollars.
US monetary tightening is also one of the primary reasons that have pushed nations to work actively for de-dollarization. US monetary tightening has negatively affected the world economy.
Peter Schiff Says US Dollar Collapse ‘Inevitable’
Peter Schiff is a well-known economist, and he has reacted to the Fitch Ratings. He stated in a tweet that the Fitch rating is not sensible and Treasury bonds are junk bonds. He also added that this rating affects currency depreciation and would result in a dollar collapse.
More than credit ratings, the rising national debt will have a hard impact as the FED will continue to print money, which will indirectly devalue the dollar.
He added in another tweet that the US will soon face a crash. Rising debt, a rise in unemployment, a falling dollar, and a rise in oil and gold prices will increase inflation. This will have a negative impact on the world economy.
Kiyosaki Says Prepare for a Crash
Robert Kiyosaki has been warning about the crash since the beginning of the year. After the reports by Fitch Ratings, he stated that the US economy would face a crash landing.
Kiyosaki is well known for his best-selling book, Rich Dad, Poor Dad. Last month, he stated that there would be a giant crash in the US economy. So he suggested people invest in gold, silver, and bitcoin, as he believes that this is the best investment in an unstable economy.
He had also warned about the bank crisis, which he blamed on the Biden administration. He believes that the BRICS currency will kill the US dollar.