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Stephen Roach, former chairman of Morgan Stanley Asia, believes there is a 50% chance that the US economy will face a double recession due to the coronavirus pandemic, Business Insider notes, Mediafax reports.
Roach bases his prediction on a number of historical elements, noting that 8 of the last 11 business recovery cycles have seen a double-digit decline.
In fact, the Yale University economist believes that the US dollar will collapse in June 2021, falling 35% against major currencies over the next two years.
“The national net savings rate, which adds together the savings of all individuals, businesses and the government sector, declined in the second quarter, entering negative territory for the first time since the financial crisis of 2009,” says Roach.
“As we move into flu season, the infection rate will start to rise again, the number of deaths will reach an unacceptably high level, the risk of a second economic recession is something we cannot ignore.”
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