Schiff believes the dollar is on a long-term downward trajectory, and that it could collapse if the government continues its current policies. That has implications for the stock market and gold, which he thinks could go to $5,000 an ounce.
Here's an edited transcript of our conversation:
Jennifer Schonberger: You've been bearish on the dollar for some time. Do you still stand by your bearish call for the greenback?
Peter Schiff: Yes. I think the dollar is going to fall for years. It's not going to fall every day, or every week. There are going to be periods of time where the dollar rallies -- that's how markets work. Like a bull market climbs a wall of worry, a bear market follows a slope of hope. And there's always going to be hope that the dollar is going to recover, based on "maybe the Fed will raise interest rates," "maybe the U.S. economy will improve." But none of that is going to help the dollar. I think the dollar's fate has been sealed by the policies being pursued by the government and the Federal Reserve, and unfortunately it's a grim fate.
Schonberger: If the dollar does remain weak, as you expect, what are the implications in terms of rebalancing the global economy?
Schiff: Part of rebalancing the global economy is going to necessitate a lower dollar. The reason the global economy is so out of balance is because the dollar is artificially strong. It's been propped up by foreign central banks, and this enables Americans to import products they really can't afford. So if we want the global imbalances to be solved, it's going to require a lower dollar -- and that's what's going to happen. The longer foreign central banks artificially prop up the dollar, enabling Americans to keep spending borrowed money, the worse the global imbalances are going to get.
LINK HERE
Russian Central Bank to buy 30 tonnes of gold from Gokhran
LINK HERE
I listen to Peter back when Gold was $600 and I am glad I did. I wish I would have known the truth about Gold as a hedge 3-4 years before that when it was $300 but oh well better late than never.
ReplyDeleteHe is absolutely correct in his statement that an ounce of gold and the price of the DOW will meet at the same point in the next 2-3 years. Gold at $5000 isn't a possibility, it is a probability.
He is 100% correct about the dollar's fate. It has been sealed. It is doomed. As is our standard of living.
ReplyDeleteThe days of us trading little slips of worthless paper for real items is soon over.
Find a basket. Fill with fruit. Place on head.
Gold at $5,000 /oz and a loaf of bread will be about $100. Thats a good hedge.
ReplyDeleteThe Congress spent another 1.1 trillion today. Most of that goes not to you or I but to the Federal Bureau of Israel. To help us fight the fake war on terror. There are bad guys lurking around every corner.
ReplyDeleteTwo hour film worth watching for HERE link is bad at the right.
ReplyDelete2:05 It looks like it has been taken off the net. Too thought provoking. Thanks for noticing!
ReplyDeleteAre you people living on Mars or somethin, gold price is going down down down and US $$ is up up and away.
ReplyDeleteTo 2:04 and others of his ilk, you are an anti-Semite. What in the world do you have against Jews? The Bible tells us that the Jews are God's own chosen people. Thus we must support the children of Abraham. The book of Genesis says "I will bless those that bless thee and curse those that curse thee". Do you really want God to be angry with us? We need to support Israel as much as we can because they are fighting evil terrorists. All Israel wants to do is live in peace.
ReplyDelete4:51 another Palin booster. Go down to the river and wash.
ReplyDeleteYour religious quotes are as silly as your belief in the war on terror. Yes, there are bigots that post here, but they are not bigots because they are critical of the dumb policies in the middle east.
ReplyDeleteUsed to be a HUGE Isreal fan...Bought into all their "Small Lion in the Desert" image...As I got older started watching documentaries from both sides...EVEN FROM THEIR OWN SOLDAIRS...Changed my mind on who the evil ones are...Now the Pals are stubborn and crooked but man Isreal is just a hypocrite...And I hate hypocrites.
ReplyDeleteLowlifes who control our media therefore their image.
ReplyDeleteHint. Who do you think had the means and motive to carry out 911. It wasn't some bearded guy in a cave. Wake the hell up. Religious retards.
ReplyDeleteWoa...how did that conversation get going?
ReplyDeleteAnyway, Schiff's been pretty money the last couple of years.
It'll be interesting to see how this one pans out. Long term - sure, the dollar is probably dust...and gold is solid most likely...unless we go truly Mad Max - in which case, I'll take my guns and ammo over their weight in gold.
I fully appreciate that gold has "always" been equated with wealth...but in the end, it really is just a pretty metal, without much real-world use...other than the fact that is has "always" been equated with wealth.
Roubini says gold is going lower. I tend to agree. I have made about 18% so far in the last two weeks shorting gold. You gold bugs will be holding a pile of shiny metal at the end of the day.
ReplyDeleteSure. Yeah. I believe people that hold PMs will be really suffering in the future. Doh!
ReplyDeletePeter Schiff is cool but he blabs a lot. I like intellectual debates but man, that guy just blabs too much for my liking. Peter, please, next time you're on YouTube or whatever, do us a favour and stick to the topics and make it interesting. You're a bore.
ReplyDelete