Tuesday, August 18, 2015

The US Economy is Doomed

While the Fed has discussed plans to raise interest rates this year as early as September, Schiff believes that the Fed will instead implement another round of quantitative easing.

"They are going to do QE4, they're going to do QE5, they're going to do QE's indefinitely until a currency crisis ends the party and they can't do it anymore. And that crisis is going to come," Schiff said. "That is what the drug addicts on Wall Street want. They want another fix, and I think the pushers are going to provide it, unfortunately."

To be sure, Schiff has made several other bold predictions, some of which, like his accurate call on the housing crisis in 2007, have come true. Others, like his claim that gold would go to $5,000, have not.

Still, Schiff remains resolute that the dollar will soon see its day of reckoning.

"You have all these currency speculators that have been fooled by the Fed's monetary magic," Schiff said. "[They] are betting the wrong way, and when they figure it out I think the bottom is going to drop out of the dollar."

By Schiff's reasoning, the U.S. economy is doomed.

"This economy will be in recession if the Fed raises rates, and it'll be in recession even if they don't raise rates," he said.

 - Source, CNBC

Like this post? Subscribe to our free gold and silver newsletter