This week, American economist Stephen Roach warned that a dollar crash is inevitable. He told CNBC that "a shifting economic climate combined with a huge U.S. budget gap would cause a dollar collapse." Roach is a senior fellow at Yale University's Jackson School of Global Affairs and vice president of Morgan Stanley Asia. He was also the chief economist of the firm for most of his 30-year career at the investment bank.
"United States financial system has had some significant macro instabilities for a long time, namely a very low domestic savings rate and a chronic current-account deficit," he said. Predicting that the dollar would sink by 35% relative to other global currencies, The economist said:
