Monday, January 26, 2015

Dollar Crisis will be worse than the Ruble crisis right now

I think this next crisis, will be the Dollar crisis and it’ll look like, you know, what they’re experiencing in Russia right now with the Ruble dropping, only, you know, the Dollar crisis will be even more problematic for Americans than the ruble crisis is for Russians. But I think that the Fed is going to have to, you know, as I said, come up with an excuse not to raise rates and to do more quantitative easing, which is the opposite of what the market expects but, you know, I think that people will figure it out. More people will start to figure it out, and I think as the economy weakens and the Fed is really forced to step it up when it comes to money printing.

And I think things that also might turn it around, I think the Japanese might have to recognize that QE has been a failure in Japan, and maybe they’ll discontinue it. That’s gonna be very negative for the dollar. And maybe the Europeans, and I think there’s a good chance, that the Europeans will not even undertake QE. Right now everybody believes that Europe is going to do it and they’re gonna start early next year, but I think there’s a good chance that the markets will be disappointed in that Europe does the right thing and doesn’t do QE. And that will be very beneficial for the euro. Of course, it’ll also be beneficial long term for Europe, you know, for European economies that they did not make the mistake that we did. But that could also help exacerbate this crisis when you get an unexpected rise in the euro and potentially the yen, as well, against the dollar.

Peter Schiff is a smart investor and author of several best selling books. He correctly predicted the economic meltdown of 2008 - 2009