Wednesday, March 26, 2014

Schiff not short markets because of US Dollar

As the Fed has to print more and more money to keep these asset bubbles inflated, it will diminish the value of the dollar.

Although I don't think there's a lot more upside in the stock market, I'm not looking for a collapse. But what I am looking for is a dollar collapse, so that even if the market continues to move higher, it's nominal highs only. It's not real highs adjusted for a loss of purchasing power in the dollar.

Being short the stock market is like being long the U.S. dollar. I don't want to borrow U.S. dollars in order to short U.S. stocks, so I don't have short positions, and I haven't had them

I do not believe that the Fed is going to take away the punch bowl. They're going to keep spiking the punch bowl until the patient dies of an overdose of drugs. That's what's going to happen. The economy's going to completely pass out at some point and it's not going to matter how much stimulus the Fed gives us.