Guess who said the following:
Far from turning around the [George] Bush legacy of deficits and debt, [US president Barack] Obama has made it worse. It has got all the hallmarks of a financial collapse about to happen in America…
The US dollar is almost becoming like junk bonds.
A senior Senator from Australia.
Leading Australian paper The Age adds:
The Nationals Senate leader Barnaby Joyce is openly canvassing an economic upheaval that would dwarf the current global financial crisis, triggered by the US defaulting on its sovereign debt within the next few years.
In unusually pessimistic comments for a senior political figure, Senator Joyce said the US Government was running such large deficits and building up so much debt that it was in a similar position to Iceland or Germany before World War II.
On a related note, in the for-what-it’s-worth department, Peter Schiff has issued an urgent warning to get out of the dollar:
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However, some smart people think the dollar will rally at the next stock market crash.