Economist and gold bug Peter Schiff has warned of a significant drop in the US dollar index, “causing a US dollar crisis, collapsing the economy and causing consumer prices and long-term interest rates to skyrocket.” Schiff continues to warn of higher inflation and stagflation, which will impact consumer prices and interest rates. He criticizes the current strategies of the Federal Reserve, warning of interest rate cuts.

Peter Schiff predicts economic crisis amid falling dollar and rising gold prices

Economist and gold bug Peter Schiff shared his views on the US economy and the dollar in a series of posts on social media platform X this week. He noted that gold closed above $2,500 for the second week in a row, while the US Dollar Index fell to a 13-month low, suggesting a potential economic turnaround.

“The Dollar Index closed at 100.67. It could easily fall below 90 before the end of the year, challenging the 2020 low,” he shared on X Friday, warning:

I think this low will be breached in 2025, triggering a US dollar crisis that will collapse the economy and send consumer prices and long-term interest rates soaring.

“The US Dollar Index just fell to a 13-month low. The ‘strength’ of the dollar is the main reason why YoY inflation has fallen from 9% to 3%. Ironically, the Fed is using ‘low inflation’ as an excuse to cut rates, but cutting rates will cause the dollar to plummet and inflation to spike,” the economist opined in another post on X on Friday.

“The US Dollar Index just hit a new 2024 low. The last time the Dollar Index traded this low was in December 2023,” he shared on X Wednesday. While noting that “the Dollar Index is actually still relatively high,” Schiff warned:

But it seems to be on the brink of complete collapse.

Schiff also noted that a weaker dollar could exacerbate U.S. economic problems by making it easier to repay dollar-denominated debt but at the cost of higher inflation and reduced consumer purchasing power. He pointed out that while the dollar has fallen, gold prices have risen, reflecting market concerns about the Federal Reserve's policies. Schiff criticized the Fed for making a policy mistake, arguing that cutting interest rates now would worsen the economic situation.

What do you think of Peter Schiff's prediction of a potential economic crisis due to a weakening dollar and rising inflation? Let us know in the comments below.
#binance #BinanceLaunchpoolDOGS #TelegramCEO $BTC $ETH $BNB