Oct 17, 2020
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Analysts predicted dollar collapse if Biden wins

Analysts at the American investment bank Goldman Sachs said that the dollar would collapse if Democrat Joe Biden wins the US presidential election. Experts have figuratively called this phenomenon "blue wave".

The first factor that will affect the dollar rate at the end of the year will be the unprecedented volume of emissions that the US Federal Reserve has thrown onto the market, transfers RIA News.

Indeed, since March 2020, the regulator has already printed about $ 3 trillion, and the printing press has not stopped yet, flooding the economy with unsecured dollars. A number of Russian experts have previously also pointed to the large risks of dollar inflation in the future, if the Fed continues this policy.

Goldman Sachs believes that if Biden wins the presidential election, the dollar will be covered with a "blue wave" - ​​defined by the color used in its advertising by the Democratic Party. It is the Democrats who have already promised, if their candidate wins, to make new external borrowings to cover the budget deficit. Democrats, in particular, have pledged to raise $ 2.5 trillion. Analysts are confident that this step will support the stock market, but the dollar will begin to sink.

Goldman Sachs also recommended that investors get rid of investments in dollars as soon as possible and take a closer look at the euro, since the “American” will become cheaper in relation to the “European” amid the impending political turmoil.

As reported, economist Mark Goykhman said at the beginning of October that the rate of the American currency at the end of 2020 could reach 80–85 rubles. In his opinion, this will be influenced by the "mood of flight" from risks in the financial markets, as well as the second wave of the COVID-19 pandemic.


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