At some point the market is going to figure out the box the Fed is in and it will not want to hold the dollar. It will realize that it is QE infinity and when the dollar really starts to come under pressure, if it loses 10, 20 percent of its value against a basket of currencies, that is when the Fed is going to have to make a choice. A very difficult choice that is has been avoiding for years, which is going to be to dramatically increase interest rates even if the unemployment rate is rising, even though it is going to force many banks into failure, even though it might force the government to default on its debt, even though its going to bring out a very severe recession, the Fed is going to have to raise rates anyway and start selling Treasuries not buying them. Or if it does not have the integrity, or the courage to do that, then its going to print even more money and the dollar is going to crash.
Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.
- ► 2019 (89)
- ► 2018 (169)
- ► 2017 (188)
- ► 2016 (252)
- ► 2015 (344)
- ► 2014 (429)
- Christmas Sales: The Worst Since 2009
- China`s Currency Is Likely To Appreciate in 2014
- The Big Story Will Be China`s Tapering
- U.S. Economy: The Highest Rate We Can Afford Is Ze...
- The Federal Reserve Eased Monetary Policy When The...
- Video: The Highest Interest Rate We Can Afford Is ...
- Bitcoin: It Will Not Work As A Currency
- Simple Economics On Wal-Mart (WMT)
- Video: The Response From The Left
- Bitcoin: The High Is Probably In
- This is Taper-Light, At Best
- The Fed Is In A Box
- How An Economy Grows And Why it Crashes: Simplifyi...
- Investing In The Big Picture
- America`s Level Of Taxation
- Alternative Media: The Best Source Of Information
- Fiat Currencies, Gold & Bitcoins
- It`s Hard To Convince People To Vote For Less Gove...
- The Whole U.S. Economy Is Based On Debt
- The Fundamentals Of The U.S. Economy
- The Potential Growth In Asian Capital Markets
- Video: Economics, Politics & Monetary Policy
- The Federal Government Is Now Monetizing 150 Perce...
- The Dollar Has Not Collapsed Yet, But It Will
- Gold Is Going To Resume Its Ascent
- What Will Happen When Foreign Central Banks Stop B...
- Emerging Markets Inflation Explained
- Bitcoin: Money Or Speculative Asset?
- If The Fed Stops, We Will Have A Complete Collapse...
- Digital Currencies Backed By Gold?
- Bitcoins: Don`t Have Any Value Absent Being A Medi...
- There Is A Bubble In The Stock Market
- Video: U.S. Stocks Are Expensive
- Bitcoins: Tulipmania 2.0
- ▼ December (34)