Peter Schiff: ‘The Dollar Is Going To Collapse’

Posted In: Commodities, Crash Prophets, Currencies, Dollar, Economy, Financial Markets, Global Equities, Gold, Stocks, U.S. Government

The U.S. dollar bears have been growling pretty loud the past couple of days. As I noted on Boom2Bust’s sister blog, Investorazzi.com, Jim Rogers, Marc Faber, and Mark Mobius all predict the dollar rally’s days are numbered. In fact, Rogers goes so far as to suggest the greenback could be a “doomed currency.”

Last night, Peter Schiff, who almost two years ago correctly predicted financial markets would find themselves in a crisis, appeared on the CNBC show “Fast Money.” The president and chief global strategist of Connecticut-based Euro Pacific Capital warned:

Our markets are going lower. This is just not a financial crisis. This is an economic collapse. Our entire phony economy is collapsing around us. There is nothing the government can do to stop it. They should just get out of the way, and let it happen.

Schiff gave this advice to CNBC viewers:

I think what’s happened in commodities and the dollar right now is temporary. It’s the result of this massive deleveraging. It’s all these U.S. institutions having to sell everything they own to settle up their margin debt, to pay their bills. I think, temporarily, you’re seeing these prices get sold off. It’s not going to last. I would be taking advantage of these opportunities. I’d be buying these dips in commodities. Buying some of these stocks abroad. And getting out of the dollar, because it’s a bottomless pit. When this dollar stops rallying, it’s going to fall like a stone. That is the next major economic crisis we’re setting up. A major, major run on the dollar. And that’s going to have tremendous repercussions on our economy and our markets.

The author of Crash Proof: How to Profit From the Coming Economic Collapse and the recently-released The Little Book of Bull Moves in Bear Markets: How to Keep Your Portfolio Up When the Market is Down also talked about his outlook for gold. Schiff predicted:

I think, ultimately, when this dollar rally runs out of steam, and it’s going to fall, gold is going up. It’s going a lot higher. I predicted it would his $1,000 this year. It did. I think, next year, gold is going to hit $2,000 an ounce, and then go higher.

YouTube Video Link
(Use the above link to select and view the segment in high quality)

(Note: The author disclaims any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein.)

Sphere: Related Content

14 Comments »