Renowned financial analyst with over 54 years of experience, Richard Bove, has warned that the U.S. dollar is finished as the world’s reserve currency, cautioning that China will overtake the U.S. economy. He warned that the offshoring of American manufacturing poses a significant threat to the financial sector and the U.S. dollar.
Richard Bove’s Economic Warning
Renowned financial analyst Richard Bove shared his dire outlook for the U.S. economy in an interview with the New York Times on Saturday. The 83-year-old worked as a financial analyst for 54 years at 17 brokerage firms; he officially announced his retirement last week. Voicing concerns about the future of the U.S. dollar, he said:
The dollar is finished as the world’s reserve currency.
In addition, Bove predicted that China will overtake the U.S. economy. He emphasized that no other analysts will make a similar statement because they are “monks praying to money,” choosing not to critique the mainstream financial system that employs them. He added that many analysts are rewarded for making unique but inconsequential and “arcane” statements.
Bove has warned about the global rise of the Chinese yuan as a threat to the U.S. dollar for quite some time. In January 2019, he explained that “China and its allies are working diligently to establish a multilateral world.” He noted, “The United States is creating a financial vacuum into which the yuan is creeping,” adding: “The biggest banks in the world are now headquartered in China.”
Bove once held the belief that big banks are essential. In his 2013 book titled “Guardians of Prosperity: Why America Needs Big Banks,” he contended that regulatory crackdowns on the industry would hinder lending to small businesses. However, he has since shifted his stance on the importance of big banks, especially following the regional banking crisis last spring.
He articulated that the offshoring of American manufacturing poses a significant threat to the financial sector and the U.S. dollar. This is because “the people making the goods elsewhere are getting greater and greater control of the means of production and therefore greater and greater control of the world economy and therefore greater and greater control of money.” Bove sees cryptocurrency as a natural beneficiary of the decline of the U.S. dollar.
What do you think about Richard Bove’s predictions regarding the U.S. dollar losing its world’s reserve currency status and China overtaking the U.S. economy? Let us know in the comments section below.