"By pumping in trillions of dollars to prop up the current economy, the Obama administration is creating an even bigger problem that will cause hyperinflation and drive down the value of the dollar. As a nation, we go deeper into debt. What we need to do is get out of debt. We need to let the phony economy contract."
Mr. Schiff is a YouTube hero. In 2006, while analysts were blithely saying that the economy was strong, he warned about the real estate bubble and the overleveraged state of the economy.
Having called it right once, he now foresees a period of intensifying inflation as the Chinese and other creditors begin to lose confidence in the dollar and sell their dollar reserves.
“They’re not going to be the bankers for all this stuff. Four years from now we could end up owing them $3 trillion. So, for them its better to take a loss on $1 trillion than to take $3 trillion. You can hear the rumblings.”