Earlier today at the "Commodities 2010: The Road Ahead" panel, you said you think the U.S. is headed for runaway inflation, rather than deflation. Why?
Peter Schiff, president, Euro Pacific Capital (Schiff): We're headed that way because we're creating too much money. Interest rates are too low. The Federal Reserve continues to expand its balance sheet. It continues to buy up assets that it shouldn't be buying. That is basically the poison that the government has decided to swallow.
We have a choice between allowing a deflationary bust, allowing asset prices to collapse, allowing businesses to fail and allowing the recession to worsen in the short run; or we can try and postpone some of that pain by creating inflation, and deal with the inflation pain down the line. The latter is what the government has chosen. Unfortunately, they chose wrong, from the point of view of the American consumer, the American worker, the American saver. The American economy is going to pay dearly for the price of re-electing some of these incumbent politicians.
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.
- Gold: The Rally Will Gather Momentum As The Year Progresses
- U.S. Dollar: The World Has A Lot More Confidence Than They Should
- Video: Confiscating Excess Wealth
- Dow Jones Industrials & Gold Parity
- Video: The Federal Reserve Will Not End QE
- What Is Full Employment To Janet Yellen?
- Momentum Stocks Are Having Trouble
- Quantitative Easing (QE) Is An Euphemism For Inflation
- China: No Evidence That Demand For Gold Will Slow
- Video: The Bullish Case For Gold
- ► 2013 (395)
- ► 2012 (438)
- ► 2011 (308)
- ► 2010 (300)
- Comments On Dubai`s Crisis
- The Best Places To Invest
- Stock Picks In The United States
- Peter Schiff On Fast Money: Gold And US Dollar
- Capitalism Is Not The Problem
- The Bigger The Boom The Bigger The Bust
- Obama Has Only Succeeded In Digging America Into A...
- Job Losses Demystified
- Latest Video Interview On CNBC
- The Road To Recovery Is A One Way Street
- Administration Is Neglecting The Capital Investmen...
- People Will Walk Away From Some Houses
- We Are Not Going To Solve The Economic Problems
- The Dollar Will Lose Its Status As A Reserve Curre...
- The Gold Standard
- Peter Schiff On Dateline (Video)
- Gold, Silver And Agricultural Commodities
- Inflation Versus Deflation
- Savings And Interest Rates
- Americans Need To Clear The Inventory Of Unsold Ho...
- CNBC Video Interview
- Live From The Floor Of NYSE
- Fox Business Video Interview: November 4
- Third Quarter "Growth"?
- Short Term Gain And Long Term Pain
- The GDP Growth Is Propped Up By The Stimulus Plans...
- ▼ November (26)