‘The dollar is finished as the world’s reserve currency’: Famed financial analyst Richard X. Bove predicts the fall of the US economy and says China will take over as the money superpower in his final forecast ahead of his retirement

China will soon overtake the US economy amid the catastrophic collapse of the US dollar, according to renowned financial analyst Richard X Bove.

In a characteristically histrionic prediction, the recently retired 83-year-old banking oracle announced that ‘the dollar is done as the world’s reserve currency’.

His dire prophecy comes despite the collapse of China’s Evergrande – affecting its real estate sector which accounts for about a quarter of the country’s economy – and despite the US economy performing better than expected in the last quarter.

But this is in line with the long-term outlook, with many analysts predicting China to take America’s top spot in the world rankings in just over a decade.

Talk to the New York TimesBove said you won’t hear his latest prediction from any other analysts because they are “monks who pray to money” who won’t speak out about the mainstream financial system on which their livelihoods depend.

China will soon overtake the US economy amid the catastrophic collapse of the US dollar, according to renowned financial analyst Richard X Bove (pictured in 2012)

China will soon overtake the US economy amid the catastrophic collapse of the US dollar, according to renowned financial analyst Richard X Bove (pictured in 2012)

Evergrande, one of China's biggest property companies, has defaulted on a loan for the first time - raising fears of a ripple effect on Chinese and global markets

Evergrande, one of China’s biggest property companies, has defaulted on a loan for the first time – raising fears of a ripple effect on Chinese and global markets

The US economy grew much faster than expected in the final three months of last year, deflating expectations as consumers and businesses continued to spend

The US economy grew much faster than expected in the final three months of last year, deflating expectations as consumers and businesses continued to spend

Florida-based Bove worked at 17 brokerages during his decades-long career before retiring from boutique brokerage Odeon Capital — and he’s no stranger to the spotlight or making bets against the grain.

Not all of his financial predictions came true, but he is known for predicting the 2008 housing crisis three years before it happened in his 2005 report This Powder Keg Is Going To Blow.

His latest forecast is in line with projections based on current growth rates, which show Chinese GDP will more than double that of the US in just over 10 years, according to World Economy.

In the short term, however, America’s economy grew much faster than expected in the last three months of last year, while China took a big hit to its real estate sector.

The US narrowly missed going into recession – which many analysts predicted was inevitable.

Gross domestic product (GDP), a measure of all the goods and services produced, jumped an annualized 3.3 percent in October to December, the Commerce Department reported this month.

Analysts’ consensus was for a growth rate in the fourth quarter of just 2 percent.

This was a slightly slower pace than the 4.9 percent rate in the third quarter from July to September – which was due to a surge in consumer spending over the summer months.

But the latest figures reflect the surprising durability of the US economy – and the willingness of the US consumer to spend despite high interest rates and price levels.

This is the sixth consecutive quarter in which GDP has grown at an annual pace of 2 percent or more.

Bove (pictured in 2012) said you won't hear his latest prediction from any other analysts because they are 'monks who pray to money' who won't speak out about the mainstream financial system on which their livelihoods depend

Bove (pictured in 2012) said you won’t hear his latest prediction from any other analysts because they are ‘monks who pray to money’ who won’t speak out about the mainstream financial system on which their livelihoods depend

The latest figures reflect the surprising durability of the US economy - and the willingness of the US consumer to spend despite high interest rates and price levels

The latest figures reflect the surprising durability of the US economy – and the willingness of the US consumer to spend despite high interest rates and price levels

At least 10 Chinese property firms have collapsed since the government launched a crackdown on the sector earlier this year, with Evergrande the biggest casualty

At least 10 Chinese property firms have collapsed since the government launched a crackdown on the sector earlier this year, with Evergrande the biggest casualty

In addition to better than expected GDP figures, there was also good news on inflation.

A measure preferred by the Federal Reserve – core prices for personal consumption expenditures – rose 3.2 percent annually, down from 5.1 percent a year ago.

Meanwhile, China’s economy took a hit after property giant Evergrande, the world’s most indebted property developer, was ordered into liquidation by a Hong Kong court.

Evergrande Group is below dozens of Chinese developers which has collapsed since 2020 under official pressure to rein in mounting debt, the ruling Communist Party sees as a threat to China’s slowdown economic growth.

But the crackdown on excess loans plunged the real estate industry into crisis, dragging down the economy and cracking financial systems inside and outside China.

Chinese regulators said the risks of global shockwaves from Evergrande’s failure could be contained.

The court documents seen on Monday showed Evergrande owes about $25.4 billion to foreign creditors. Its total assets of about $240 billion are dwarfed by its total liabilities.