SHARP-tongued Mahathir Mohamad, scourge of currency traders worldwide, has said the US dollar is headed for a 'catastrophe' and will never regain its old strength.
The former Malaysian leader said Washington's bulging deficits would ultimately sink the greenback. 'The catastrophe will come one day because even the most powerful country in the world cannot repay loans amounting to $7 trillion (£3.7 trillion),' he reportedly told an Asian business conference.
The 79-year-old - who pegged his country's sinking currency firmly to the dollar when Prime Minister in 1998 - said: 'It is certainly on the way to collapse.'
Mahathir advised the audience of executives to steer clear of accepting the dollar as it was unstable, and likely to drop further.
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