With all the debt our nation has, I am very worried about the health of the U.S. dollar. What happens when, not if, it collapses? It seems all it would take would be for China and others to sell their U.S. assets, and all heck would break loose.
You said a mouthful there: all heck would certainly break loose if the rest of the world decided to get rid of their U.S. assets at the same time. The dollar would immediately weaken and interest rates would rise as a result. They would continue to go up until the markets reached a new equilibrium where the available supply of dollars met global demand. (Read the full article as previously published in the Montgomery Advertiser Sunday Oct 17th…)
The opinions expressed within this report are those of John Norris as of the initial publication of this blog. They are subject to change without notice, and do not necessarily reflect the views of Oakworth Capital Bank, its directors, shareholders, and employees.