New IMF report suggests dollar is 10-20% overvalued
On June 27, the IMF published a report which validated what many in the alternative media knew already… that economic growth over the past nine years following the 2008 financial crisis has been much worse than ‘officially’ reported. ¬†And because of this, and because of several other factors such as increases to the national debt, the current value of the dollar is estimated to be 10-20% higher than it should be.
Interestingly, the dollar has actually fallen more than 9% since the beginning of the year, and in direct opposition to what it should normally do when the Federal Reserve raises interest rates.
The US dollar is up to 20 percent overvalued, the International Monetary Fund (IMF) said in a report on Tuesday.
WASHINGTON (Sputnik)¬†‚ÄĒ The Fund underscored that post-economic crisis growth has also been low and too unequal, relative to¬†historical performance.
“The US dollar is moderately overvalued (by around¬†10-20 percent),” the report stated.
The Fund noted that overall outlook for¬†the US economy is clouded by¬†other important medium-term imbalances too, including rising public debt.
“The current account deficit is expected to¬†be around¬†3 percent of¬†GDP over¬†the medium-term and the net international investment position has deteriorated markedly in¬†the past¬†several years,” the report said. – Sputnik News
If the IMF is correct, then the real value of the dollar should be around 77 on the dollar index, which measures the reserve currency against a basket of other ones. ¬†And historically this puts the dollar very close to its value just after the 2008 financial crisis where it fell to 72, and on the precipice of complete collapse.
Thanks in large part to the rise of cryptocurrencies, investors are finding other alternatives to dollar based securities which for decades have been the primary vehicles of wealth protection. ¬†And when you add in both gold and silver to the mix, the likelihood of the dollar declining even more going forward is a strong probability as fewer and fewer buyers invest in the bonds that keep it propped up.
Kenneth Schortgen Jr¬†is¬†a writer for The Daily Economist, Secretsofthefed.com,¬†Roguemoney.net, and Viral Liberty, and hosts¬†the popular youtube podcast on Mondays, Wednesdays and Fridays.¬†Ken can also¬†be heard Wednesday afternoons giving an weekly economic report on the¬†Angel Clark radio show.