In November 2008 Peter Schiff warned of a dollar collapse and that the move lower in commodities was due to deleveraging. At the time of the interview the dollar index had a strong move up from 71.5 to 88; a 23% increase in four months. Of course, many analysts and market mavens, once again, laughed at Mr. Schiff and claimed he was crazy to invest in commodities as the dollar was strong.
Shortly after the interview the dollar index saw a huge move down from 88 to 78 in one month. After the steep decline in December 2008 the dollar index found support and moved higher, all the way up to 89. At this point, Mr. Schiff continued to point out that the Federal Reserve Bank was printing money out of thin air and this was going to greatly decrease the value of the dollar.
President Obama, Ben Bernanke and Timothy Geithner all stated that the dollar was going to remain strong even though the Stimulus Plan was going to print TRILLIONS of dollars out of thin air. As the Fed continues to print money to bail America out of this recession the value of the dollar drops. Today the dollar index is at 75.5 which is 14% below the 88 level during the Peter Schiff interview.
Analysts will continue to laugh and joke that Peter Schiff is wrong and is too bearish on the economy. Looking back over the past few years it is very hard to find a time in which Mr. Schiff was wrong. He continues to remain bullish on commodities and especially gold. It is interesting that mass media is finally recognizing the value of the dollar sinking; almost one year after Schiff warned them.
Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.