Schiff On America`s Standard of Living

We are living beyond our means in America. By contrast, the rest of the world collectivelly has to be living below their means. You know, they are sacrificing so that we can indulge ourselves.

When that stops and there is going to be a major realignment og global living standards. You are going to see americans consuming a lot less, our lifestyles are going to be diminished dramatically. And other people are going to start to enjoy the purchasing power that we lost.

I don`t know how it is going to play out in Europe, I think the biggest beneficiaries of your loss of purchasing power are probably going to be in Asia. There you going to see the biggest increases in standards of living as they start consuming a lot more.

If we take an example, we consume 50% of the world`s gasoline. Well, that means that the rest of the world has to get by with the half that we don`t consume.

Well, when americans are priced out of the market, when the dollar collapses and we cannot afford to use all that gasoline, that means there is more gasoline for everybody else.

I think the countries that are most supressing their own currencies in Asia, which is like holding a beachball under water, once they take their hands away its going to shoot up and you are going to see big realignments upwards in these asian currencies and they are going to have a greater purchasing power.

A lot of people in China that are now riding bycicles are going to find they can afford autos. Maybe they will send some of their bycicles over here, because we won`t be able to drive our SUV`s anymore.

Peter Schiff is the President and Chief Global Strategist of Euro Pacific Capital. As a result of his accurate forecasts on the U.S. stock market, economy, real estate, the mortgage meltdown, credit crunch, subprime debacle, commodities, gold and the dollar, he is becoming increasingly more renowned.

He has been quoted in many financial TV channels and newspapers like The Wall Street Journal, Barron's, Investor's Business Daily, The Financial Times, The New York Times, The Los Angeles Times, The Washington Post, The Chicago Tribune, The Dallas Morning News and appears regularly on CNBC, CNN, Fox News, Fox Business Network, and Bloomberg T.V..