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Business Insider - Jeff Gundlach: US Doesn't Seem to Care About Dollar's Reserve Status

August 24, 2021
Dollar Crash

Article by Emily Graffeo in Business Insider

Billionaire investor Jeffrey Gundlach told Yahoo Finance in a video interview on Monday that the US is running its economy like it doesn't care if the dollar loses its global reserve currency status.

The DoubleLine Capital founder and CEO reiterated his long-held view that the dollar is going to go depreciate further versus peers the next few years, blaming the US's current economic policies for the situation.

"We're running our economy in a way that is almost like we're not interested in maintaining global reserve currency status," Gundlach said.

The investor - who has been nicknamed the "Bond King" from calls he's made on the US fixed-income market - explained that in the aftermath of the pandemic, the strongest economy "by far" has been China, not the US.

While the US economy rebounded by consumption, a lot of the consumption went straight to China, he said.

In fact, Gundlach said China's economy is growing at such a rapid pace some economists are estimating it will become the largest in the world by as early as 2028.

"China's made no secret of the fact that they want to be a global player and have at least a seat at the table of global reserve currency status," he said, adding that China has "made no secret of the fact that they want their military to be dominant, maybe the biggest in the world."

Combine this with the fact that the US is "growing debt like crazy," and it's clear the dollar is headed towards losing its reserve currency status, Gundlach said.

In a July interview, the investor said the dollar is "doomed" in the ......

To read this article in Business Insider in its entirety, click here.

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