BlackRock Issues De-dollarization Warning, Says Rising Debt Levels Could Push Capital Outside US Borders: Report

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The largest asset manager in the world says the risk of a de-dollarization of the global economy has edged higher due to rising US debt levels. In a third-quarter fixed income outlook note seen by Reuters , BlackRock analysts say that growing government debt is weakening demand for key US assets like the dollar and long-dated Treasuries. While de-dollarization may be far-fetched, the analysts say the government’s fiscal situation is increasing that risk, especially following the passage of Presi...