- Legendary investor Jeffrey Gundlach told Yahoo Finance that the United States is running its economy as if it doesn’t care about maintaining the dollar’s reserve currency status.
- The so-called “bond king” has long been bearish on the U.S. dollar.
- Gundlach also pointed out that China’s economic growth rate has exceeded that of the United States.
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Jeffrey Gundlach Tell Yahoo Finance in a video interview On Monday, the United States was running its economy as if it didn’t care whether the dollar would lose its status as a global reserve currency.
The founder and CEO of Shuangxian Capital reiterated his Long-held views The U.S. dollar will further depreciate against other currencies in the next few years, blaming this situation on the current economic policy of the United States.
“Our economy operates almost as if we are not interested in maintaining the status of a global reserve currency,” Gundlach said.
The investor-who he was nicknamed the “bond king” on the phone in the US fixed-income market-explained that after the pandemic, the strongest economy “by far” is China, not the United States.
He said that although the US economy rebounded due to consumption, a lot of consumption went directly to China. In fact, Gundlach said that China’s economic growth is so fast that some economists estimate that it will become the world’s largest economy as early as 2028.
He said: “China has made no secret that they want to become a global player and at least have a place on the global reserve currency status table.” He added that China “makes no secret that they want their military to dominate, perhaps in the world.” biggest.”
Gundlach said that, coupled with the fact that the United States has “crazy growth in debt,” the U.S. dollar is clearly losing its reserve currency status.
In an interview in July, the investor stated that the U.S. dollar is “destined“In the long run, it will be stronger in the short term.
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