BlackardLarry Fink, chief executive of BlackRock, said in an interview on Tuesday that the dominance of the dollar will not last forever. The US dollar's reserve currency status has been affected by US sanctions.
The CEO of the world's largest asset management company warned that there are only a handful of days when the dollar is a global reserve currency.
In fact, as the latest response to US sanctions, Iran and its trading partners have been negotiating to reduce the dollar's share of mutual trade.
Previously, Russia, Turkey, India, Iraq, Qatar, China and other countries have been actively taking measures to gradually switch to the national currency in trade or financial settlement to avoid the pressure of Washington.
The 1.3 trillion budget deficit is the biggest risk!
In addition, Fink said that the expansion of the US budget deficit is the biggest risk to end the global hegemony of the dollar.
"As the economy slows, the $1.3 trillion deficit will be a big problem," Fink further explained.
Of course, he also said that although the US dollar will not lose its dominance of world currency overnight, or tomorrow or next year, but over time, especially with the United Statesinterest rateThe rise and the pressure of the federal government on huge debts, creditors who were eager to buy US Treasury bonds will gradually disappear.
It is worth mentioning that the current market seems to have begun to hesitate to continue to buy US debt! The US Treasury Department had previously recorded a record $83 billion in government bond auctions. However, the market did not seem to be paying because the US three-year government bond auction suffered a nine-year "cold winter" on the first day of the auction.
In this regard, Fink warned: "The problem is that our deficit is very large, and we are fighting global creditors. I do not recommend that you fight with creditors. 40% of the US deficit is funded by external investors. This world No other country has a similar situation."
US stocks or "lying guns"?
Finally, Fink also said that with the Fed raising interest rates, the United Statesinterest ratePicking up, the United States is heavily in debt, such a big background, the US stocks will "lie down"!
Fink said: "As the deficit expands and government debt rises, the United States will face a supply problem. 'The interest rate is too high, which will make it impossible to support economic growth' will become a problem that the United States must face."
The CEO warned that the US is increasing its debt because of the deficit, and because of the deficit, investors will demand higher returns, which will eventually drag the stock market.
(Article source: Yi Niu Finance)
(Original title: US sanctions +1 trillion budget deficit! The dollar's global currency status is not guaranteed, US stocks or "lying guns"?)