In a recent interview with Michelle Makori from Kitco News, Lynette Zang, CEO of Zang Enterprises, issued a dire warning about the global economy, especially the US dollar and the banking system.
She asserted that hyperinflation has begun and the US is entering a high inflation environment. Zang predicted that 2025 will be a tumultuous year with a loss of confidence in the dollar.
She stressed that data from the Federal Reserve shows that the purchasing power of the dollar has plummeted and could lose its value altogether.
Zang believes the US government will continue to borrow, print more money, and increase inflation. While political leaders may postpone the crisis until after the 2024 election, the situation will become more tense by 2025.
Zang also said the US banking system is in dire straits. She described banks as “sinking in trouble,” and small rate hikes are not enough to fix the problem. Federal Reserve data shows that the purchasing power of the dollar is on track to fall to zero, and hyperinflation could soon follow.
Zang also noted the consolidation in the US banking industry. There were 54 mergers and acquisitions (M&A) announced in the first half of 2024, and this number is expected to surpass the 99 in 2023.
She also warned of the number of bank branch closures, with more than 2,500 closing in 2023 and more in 2024.
Zang explained that currencies are cyclical like everything else. The US dollar is currently in the late stages of this cycle.
The inversion of the US yield curve is a sign of an impending recession. However, she warned that this recession will be more severe, accompanied by hyperinflation and a complete loss of confidence in the dollar.
Finally, Zang emphasized the important role of gold in protecting assets during crises. When the dollar collapsed, she advised people to hoard gold because it is an asset that has retained its value through crises.
