Dollar literally a BOMB that
could go off any day, warns Peter Schiff
By RT
August 19, 2020 "Information
Clearing House" - The scale of
money printing in the United States is
unprecedented, says veteran stockbroker Peter
Schiff. The deficits are “through the roof and
the government is spending more money than ever
before.”
Schiff, who is CEO of Euro Pacific Capital, told
the MoneyShow that more than 60 cents out of
every dollar the government is spending is being
printed. So, the Federal Reserve is printing
more money for the government to spend than the
US government is collecting in taxes.
“The
myth is that the US economy was strong before
Covid. It wasn’t strong at all; it was the
weakest it has ever been. It was the biggest
bubble that has ever existed. That’s why the
economy imploded so quickly as a result of
Covid-19 lockdowns. The air started coming out
in the fourth quarter of 2018… And the dollar is
being wiped out.”
Schiff points out that “everything that
the US government did in the aftermath of the
2008 financial crisis was a mistake.” All
of its monetary policy was wrong, all of its
fiscal policy was wrong. “As a consequence,
we never actually recovered from the crisis,
which was caused by the Fed and the government.
We simply made all the problems that caused that
crisis worse.”
America is about to experience inflation on an
unprecedented scale, he says. The cost of living is
going to skyrocket and it’s going to happen very
quickly. “It’s going to hit people like a ton of
bricks. And they are not going to see this coming.”
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More people will be blindsided by the dollar crisis than by the financial crisis, and the dollar crisis is much worse, Schiff warns. “Because when we had a financial crisis, the Fed was able to print dollars to bail everybody out. When you have a dollar crisis that doesn’t matter anymore. You can’t print dollars because nobody wants them.”
He explains that will be a sovereign debt crisis,
which means US Treasuries are going to go bad, as
well as all debts denominated in US dollars.
The dollar “is going to fall through the
floor and inflation is going to ravish the United
States,” Schiff predicts, adding: “What’s
about to happen is that the world is going to go off
the dollar standard and go back to the gold
standard. That is where we are headed.”
The current system doesn’t work, you can’t back
your currency with an unbacked currency, he says.
“The entire American economy is built on the
foundation of the dollar being the world’s reserve
currency. That is the secret source that makes this
economy work. Once the dollar is just another
currency, then it’s all over, it’s the end of the
game for America.”
According to the economist, “The dollar could
collapse any day, it is like literally a bomb. The
key is to get money out of US dollars because it’s
the dollar that is going to be collapsing.”
He says it’s reasonable to buy gold to ease the
financial pain because “Gold and silver stocks
are a bargain.”
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