The Dollar Will Take The Bond Bubble With It

Eventually when the U.S. Dollar bubble bursts it is going to take the bond market with it and this bubble economy is going to implode. Then the economic events of 2008 will look like a Sunday school picnic.

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

The Federal Reserve May Start Buying Corporate Bonds And Stocks Next

We are going to get negative interest rates, we are going to get quantitative easing and the Fed will not only be buying bonds and mortgage backed securities, they will start buying corporate bonds, they might buy municipal bonds, they even might buy stocks.  What knows what they are going to monetize.

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

We Will Get Negative Interest Rates And More QE

What caused the big rally in the U.S. Dollar was the belief that the QE and zero percent interest rates were successful that the Federal Reserve was going to end the program and it was the anticipation of the tightening, of the normalization of interest rates, of the shrinking of the Fed`s balance sheet, that was what built the rally in the U.S. Dollar. But that was false.

As people figure out that they cannot normalize interest rates, they cannot shrink the balance sheet. In fact their balance sheet is going to grow again and not only are they not going to normalize interest rates, they are going to bring them back to zero. In fact this time zero is not going to be low enough. They will go negative. We will get negative interest rates and QE.

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.