Peter Schiff on why the US dollar should collapse
Posted on 05 July 2009 with no comments from readers
Last summer Peter Schiff jumped on the rising oil price as a trend just as it was about to reverse. Perhaps he is making the same mistake this year with the US dollar, and bashing it down just as prospects are looking up in the short term.
US commentators have a very US-centric view of the world and this sometimes leads them to forget the rest-of-the-world which is not just China. For the US dollar to collapse then the euro-zone, UK and Japan need their currencies to outperform which just does not look very likely in the present global slump.
At the same time, if you look at the next item, there are powerful forces like a coming US stock market fall that will tend to support the dollar into the autumn, and be negative for oil and perhaps gold, although precious metals are increasingly the new safe haven asset of choice.
Schiff will be right on the US dollar one day. The forces against it are enormous. But actually that has been generally true for the past four decades.
no Comments posted by readers:
The US dollar will be OK for at least the next couple of years. I’ll take any that you don’t want. Are you readers ready for the coming ‘Frankenstimulus’ or ‘Son-of-Stimulus’? What about ‘Stimulus II’? I know what the folks at Fox News will call it. Someone should start an online poll. I like my ‘Frankenstimulus’.
I agreed with you Bill the USD ought to be OK for the next couple of years.The Chinese together with other members of BRIC are simply raising an early alarm (which is not considered early as far as international dominance reserve currency is concern).The US regime has to come to term with the shaping reality that sole dominance of USD doesn’t work any more. As period for USD to enjoy its seemly redeemable paper money is like an expiring medicine ,continue to ignore the expiring date is taking risk in one’s hands ,surely the rest of the world should be given an option beyond the sole dominance of USD.In this aespect ,an enlightened US govt and corporate sector working on a win win scenario by facing up to the music of a soft landing of USD to facilitate the early settlement of a alternative of a cuouple of joint-dominance currencies ,shall be the least blessing the US can provide to the world at large ,to redeem its ‘cash cowing’ of the rest of the world for the last few decades.
Fasten yours belts and be thrifty to turn over the new leaf,accept the ultimate fate of your own doing that the USD would move to depreciate up to 3 quarters of its value.STOP PRINTING THE PAPER MONEY!