In a recent interview with Kitco News, Peter Schiff, chairman of SchiffGold and founder of Euro Pacific Asset Management, made some shocking predictions about the future of the US economy.
He warned that the Federal Reserve's upcoming actions would have serious consequences for the US dollar and global financial markets. Schiff said that the Fed's rate cut would be a huge mistake, causing inflation to skyrocket and damaging the Fed's credibility.
Schiff asserts that when the Fed lowers interest rates, inflation will spiral out of control and lead to the collapse of the US dollar.
He believes that the process of global de-dollarization has begun and will accelerate in the future. This will cause financial instability, especially for the US.
According to Schiff, gold will become a safe haven when the economy is in crisis, with predictions that gold prices could reach $10,000/ounce in the next few years.
Schiff stressed that as central banks move away from the dollar, gold will return to its role as a primary reserve asset.
On the labor market, Schiff said recent employment figures have been overstated. Many new jobs are part-time, as workers struggle with inflation.
He also criticized the US government for hiding the real economic situation by adjusting labor and inflation data after its release.
Schiff is concerned about the growing US trade and budget deficits. He believes that the US economy is too dependent on imports, causing the trade deficit to continue to increase.
Additionally, Schiff warned that the Fed's reliance on erroneous data could lead to erroneous monetary decisions, further hurting the economy.
Ultimately, Schiff predicts that quantitative easing (QE) will return and interest rates will continue to fall, increasing inflation and making it difficult for the Fed to control the situation.
This would force the Fed to buy more bonds, further weakening the dollar.