Peter Schiff now predicts demise of the dollar

By Tuesday October 6, 2009

This is the guy who predicted the Housing bubble, the financial meltdown, and now he’s saying this.



37 Comments
  1. pedro says:
    10/7/2009 at 5:18 am

    #20 Maybe #8 is Olberman in disguise.

    Reply
  2. chris says:
    10/7/2009 at 5:30 am

    #19 Personal attacks show deeper understanding of the issue.

    Venezuela doesn’t hold many dollars. Mostly gold and euros. It also does barter deals, non dollar denominated, with neighboring countries with the stated purpose of crashing the dollar. And it has been doing this since 2005.

    Point is currency is converted effortlessly into whatever type the buyer desires.

    A currency crisis is possible, but it will have to do with a revulsion at US debt levels. It won’t have to do with tinpot oilmen creating a petrodollar.

    Reply
  3. smartalix says:
    10/7/2009 at 5:52 am

    Whistling in the dark…

    Reply
  4. sargasso says:
    10/7/2009 at 5:56 am

    Pessimists have it easy. If they’re correct, they’re instant oracles. If they’re wrong, everyone is so happy. The greenback has been underestimated for over a hundred years. It will stay at centre stage for as long as it is the most easily and affordable way to exchange with Americans. The great US wheat belt is the breadbasket of the world, US technology companies still control a vast percentage of the world’s consumer and industrial equipment markets, the petro-chemical and agriculture industries are run entirely on US manufactured machinery. Wall Street is where all the world’s money eventually goes (including my New Zealand pension). The greenback is good and strong.

    Reply
  5. pedro says:
    10/7/2009 at 5:59 am

    #22 What the hell are you talking about!

    First of all, you’re using some truths to make your false affirmations. (I didn’t notice you were a lefty loon when you did this)

    You said venezuela didn’t sell oil in dollars, which is utterly false. Then, you try to admit it by saying they do barter. Yes, they do barter but mainly with CARICOM countries and the ammount of oil that goes in that direction is minimal.

    All the negotiations the venezuelan government does with other countries is mainly in US dollars http://tinyurl.com/ydpqpxm

    You forgot to add that it gives away oil to cuba, which later resells it overseas. They even use the same tankers. They are so bold that cuba redirects the tankers in mid seas to whatever destination they want to sell the oil that was originally going to cuba. They can do that, cuba controls the country.

    Even though venezuela “studies” (a big word for the bunch of ignorants that act as cuban proxies) to change its money reserves to Euros, the thick of it is still in US dollars. The only thing that was transfered into Euros were the reserves held in treasury bonds. http://tinyurl.com/yborvuk

    More proof that you read nothing is the fact that I already told you that the annual budgets is not only calculated using the US dollar as the reference for oil price, but the national budget is calculated with the US dollar as reference, because most of the venezuelan income is in that currency.

    But hey, nobody noticed you’re a shill for the cub… er, venezuelan government. Your secret is safe.

    Reply
  6. bobbo, most things are plain to see says:
    10/7/2009 at 6:06 am

    #24–sargasso==you are taking a position directly contrary to the one I posted at #20.

    I think the most egressious thing you have said is: “US technology companies still control a vast percentage of the world’s consumer and industrial equipment markets,”===so, I ask you to define: “vast percentage.” You act as if speaking from 1960 before the rise of the Rim of Fire?

    About as equally bad but more subject to smoke and mirrors is: “The greenback is good and strong.” /// Now, all currency is “exchangeable” as are all commodities, but that doesn’t take the constant fall of the US dollar from ((again)) the 1960′s a strong currency.

    Please address the USA’s strength in consumer goods before addressing the rest? I’ve had enough smoke and mirrors.

    Reply
  7. qb says:
    10/7/2009 at 6:14 am

    #22 Chris

    Venezuela is just a drop in bucket. Look at as a simple matter of math. Oil alone accounts for $2.3 billion per day in physical trades worldwide, or conservatively about $800 billion per year. (Let’s not even talk other energy commodities or futures).

    The USD is reserve currency for oil commerce currently which means that people must buy in USD. However, the sellers are now at massive forex risk and they don’t have the option anymore (bad pun) of traditional hedging strategies due a lack liquidity in the markets. Bad news, switch currencies or go to gold. This means lots of selling of USD on a daily basis and buying other currencies or gold.

    This isn’t the only problem with the USD but is part of a dog pile. If it were “normal” times the raising interest rates 1/4 or 1/2 would reverse the trend. The Oz interest rate increase was a signal to everyone that they are breaking with the US policy of artificially low interest rates. Others will follow – and eventually the US will have to follow, not lead. This has been 40 years in coming so it’ll take more than a couple of months to correct.

    In a nutshell the US as a whole is grossly overvalued, and the correction is underway. It’s going to hurt everyone, but the US is going to hurt the worst. The rest of the world is taking their losses and getting on with their lives. I suspect that Obama will eventually have to do the right thing and everyone will hate him for it.

    Reply
  8. Hans says:
    10/7/2009 at 6:38 am

    Unless the Daily News Egypt is plain out lying, Iran is switching over to Euros. I found an article in the Daily News Egypt when I was there on a recent business trip.

    This is my answer to Peter Schiff on youtube:

    Reply
  9. pedro says:
    10/7/2009 at 7:09 am

    #27 said: ” I suspect that Obama will eventually have to do the right thing…”

    Wake me up when that happens.

    Reply
  10. RTaylor says:
    10/7/2009 at 8:13 am

    The truth is we are in unchartered waters and every player is scared shitless. We have a global economy, we are in a financial crises with no industrial base left. Every nation is still looking out for their own asses, not realizing the domino effect will come around to them again. Take your money and book a first class around the world cruise. When the ship comes back to New York, and you’re broke, weigh your pockets down and jump off the stern. It will be far less painful than living through the next ten years. And yes the Democrats will lose a majority next year, and not a damn thing will be done, which might not be so bad.

    Reply
  11. Micromike says:
    10/7/2009 at 11:07 am

    There are plenty of crack-brained theories out there but none are needed. It’s obvious our economy has collapsed our dollars are worthless and people will soon be hungry all over America.

    My question is: Why can’t the supposed high powered analysts come up with suggestions for how to get through it and how to make it better.

    My belief is that economy is VooDoo that nobody understands but everybody tries to manipulate and control. This causes our boom and bust cycles that are amplified by crooked bankers and elected officials.

    My opinion is the “experts” don’t know what they are talking about or the economy wouldn’t have collapsed.

    Reply
  12. gmknobl says:
    10/7/2009 at 5:08 pm

    The only way to get America’s finances fully back on track is to have a strong dollar. Shrub and Co. robbed the U.S. treasury and continue to benefit from a weak dollar. Aside from prosecution for gross negligence on that score for purposefully making the dollar so weak, there’s little we can do about that now. (Of course, there’s plenty else to prosecute him on and other Shrub admin peoples.)

    A weak dollar is only useful for a while and only if you make it strong again. It is very, very weak now and needs to be made strong in a hurry. And yes, the Sauds would love to see our currency fail.

    Reply
  13. chris says:
    10/7/2009 at 6:10 pm

    Pedro, I worry for you. Really. Cuba and Venezuela just don’t have “shills” all over.

    #27

    Sorry, I know Venezuela is not the issue but pedro seems pressed about it. Responding there.

    The oil/currency issue is sort of separate from the currency/debt issue. I think you could price oil in anything and not materially change the cost to anybody. Doing a currency trade prior to buying oil or a currency trade after selling oil is done all the time. Schiff suggests that by pricing oil in dollars the US has somehow appropriated middle eastern oil. That’s not true. We appropriate middle eastern oil by invasion and power politics.

    Now for currency/debt: The next few years are really going to suck if you have a lot of debt. My opinion on the endgame of this crisis is for banks to admit that many of their debts are just not going to be repaid. Until that happens we’ll just grind along.

    A lower dollar would help the US make products with our industries and sell those products overseas. Could be good. A higher dollar is good if you have a bunch of dollars. We might even have a lower dollar and lower price levels(for many goods at least).

    As long as you identify inflation or deflation and respond intelligently to them I don’t see it as a huge problem.

    Hyperinflation or rapid deflation are different beasts. I just don’t see all the other countries coming together and conspiring to push the US into extreme inflation or deflation.

    We are too valuable a market AND we have too many weapons.

    I’m thinking less back alley beatdown and more ugly looks/snide comments at the next G-20.

    Reply
  14. Rick Cain says:
    10/7/2009 at 8:33 pm

    I’m banking on massive dollar deflation. It would be nice again to be able to purchase a meal at a resturant again for $2.00

    Reply
  15. Uncle Patso says:
    10/7/2009 at 11:48 pm

    # 33 chris:
    “A lower dollar would help the US make products with our industries and sell those products overseas.”

    “…our industries…”? Do we have any left?

    The only thing that will strengthen the dollar is to increase the income of the treasury. Sorry folks, but that means raising taxes. I’m amazed President Obama and Congress haven’t already repealed Bush’s tax cuts.

    I think a 50% top rate would be a good start. I don’t recommend LBJ’s strategy of a 10% surtax. Yet.

    You may commence screaming now.

    Reply
  16. pedro says:
    10/8/2009 at 12:41 am

    #33 Well, using half truths to come up with lies qualified you as a shill. So get better facts & a little more informed for next time.

    And now, you say I brought up the venezuelan issue. Could you be more immature?

    Face it, you’ve been proven wrong on all your points be a lot of people here.

    Reply
  17. Bahram says:
    10/8/2009 at 8:40 am

    World is a going to be a much safer place when the bully is finally “dead”.

    Reply

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