Tuesday, June 7, 2011

Peter Schiff - “We Will Destroy the Currency Completely”

With the stock market continuing to weaken while gold holds near $1,550, today King World News interviewed Peter Schiff, CEO and Chief Global Strategist of Europacific Capital. When asked what he sees ahead Schiff responded, “The stimulus is wearing off and the much anticipated hangover is starting to set in. The economy is now in worse shape because the government stimulated it. The stimulus merely interfered with the corrective process. So instead of resolving some of our economic imbalances, the government has made them worse. Now we are on the precipice of a bigger economic decline than the one the stimulus interrupted back in 2009.”

When asked about the US dollar Schiff remarked, “It’s going lower, last Friday the US dollar closed at a new low against the Swiss Franc. You need a $1.18 to buy a single Swiss Franc. I think you are going to see much more of the safe haven money going into other currencies or precious metals and the dollar is going to lose that bid, especially if the Fed launches QE3...If you look at the economic relapse that’s going on right now, look at Friday’s abysmal job numbers, look at the housing numbers, understand that all of this is taking place with record monetary and fiscal stimulus. What happens if we remove those supports?

When asked if we are headed for another financial crisis Schiff replied, “I think it’s a certainty. The financial crisis in our future is bigger than the financial crisis in our past. We are more vulnerable as a nation, we are more heavily leveraged now than we have been at any other time. We are more vulnerable to an increase in interest rates or a run on the dollar and either of things or both of things could happen soon.
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