Dollar privilege is about to go away: Peter Schiff

You have the privilege of consuming without producing, you can borrow without saving and everyone has enjoyed that privilege and really has abused that privilege. The entire nation particularly the US government has abused this privilege and this privilege is about to go away

With the Federal Reserve driving a “phony rally” at the bourses at a time when the Covid pandemic is pushing the world economy to the brink, the dollar privilege, enjoyed by all Americans, is going to end sooner or later. And when the dollar would lose its reserve currency status, gold would take its place, says Peter Schiff.

In fact, the libertarian economist predicts the price of the precious yellow metal to eventually touch USD 10,000. “Gold is the new gold,” he says.

In his recent podcast, Schiff said the year 2020 has been eventful for the US equity markets thanks to the Fed, but this bubble is going to burst soon—a stock market and bond market implosion and a collapse of the U.S. dollar are more likely this time than the global recession in 2008.

According to the CEO of Euro Pacific Capital, the stock market bull run has little to no connection with economic realities.

“In fact, the Federal Reserve drove it all. The Fed has dropped trillions of dollars into the economy. This is a ‘monetary Hail Mary’. The Fed is monetising all government debt and has even resorted to purchasing corporate bonds and lending money directly to companies. That’s why their share prices are going up. So, it’s a phony rally. It’s air going back into a bubble,” he said.

When this bubble bursts, “the real privilege that everybody needs to be worried about losing is the privilege of the US dollar being the reserve currency”

When this bubble would burst, “the real privilege that everybody needs to be worried about losing is not white privilege, it’s the privilege of the US dollar being the reserve currency”, said Schiff. At that time, people who would own gold are going to be rewarded.

“All Americans regardless of their race have enjoyed that privilege right.. we have this exorbitant privilege and we are able to issue the reserve currency and that allows every American whether you’re black, white, Hispanic to benefit.

“You have the privilege of consuming without producing, you can borrow without saving and everyone has enjoyed that privilege and really has abused that privilege. The entire nation particularly the US government has abused this privilege and this privilege is about to go away and then everybody is going to see their wealth go up in smoke. We’re gonna really move far to narrow the wealth gap because white Americans have more,” he said.

According to Schiff, the only way to keep the US stock market going up is to crash the dollar. “To sacrifice the value of the US dollar, and in doing so, the Fed will be rewarding the people who own gold, who own gold stocks, and who own foreign stocks to a much greater degree than anyone who owns US stocks”.

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Cult Today

Cult Today

CULT is a collective for NFT lovers. We are passionate NFT hoarders, we love minting our own collections and we are always on the lookout for collaborations. Most of our work can be found on StakeCube Marketplace

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