I think Peter Schiff makes sense on economics, but not his wacky political beliefs (like disbanding the USDOT – ironically stated after he just flew US to London…I guess it was just luck he is still alive, not the FAA).
Anyway, on his most recent podcast (Episode 906): https://schiffradio.com he reiterates some ideas he has been saying for many months. He acknowledged the most recent CPI released this past week, but insists that inflation is going to reverse and go higher.
His reasons:
The dollar is weakening, and will continue to weaken significantly, because:
-The debt ceiling was suspended, allowing for more money printing to finance continuously expanding
US Budget deficits
-The BRICS nations are planning a gold-backed currency, so they are moving away from the dollar
-China and Saudi Arabia are exploring ways to trade oil using the Chinese Yuan, instead of the US
Dollar
-He anticipates that at the first sign of trouble, the Fed will go back to more QE
Because of our ever-widening trade deficit, a weaker dollar causes imported goods to be more expensive, adding to inflationary pressures.
A weaker dollar causes commodity prices to rise, adding to inflationary pressures.
I am not an economist, just trying to learn. The above seems to make sense…
Leave a Reply