Peter Schiff’s Warning on Treasuries and the US Dollar
Economist and gold enthusiast Peter Schiff has once again sounded the alarm on the state of the US economy and the potential collapse of the US dollar. In a recent social media post, Schiff emphasized that a crash in Treasuries is imminent, which will bring an end to the party and expose the truth about the situation. He further warned that this crash will lead to a tanking of the US dollar, ultimately affecting the American standard of living.
The Ultimate Risk Asset
Schiff highlighted that US Treasuries are now considered to be the ultimate risk asset, with guaranteed losses. He outlined two possible outcomes: default and deflation, or devaluation and inflation. However, he believes that devaluation and inflation are more politically expedient options. This means that anyone who owns US dollars will also suffer significant losses.
A Collapse in Demand for Dollars
Schiff has been consistently warning about the potential collapse of the US dollar. He explained that as demand for Treasuries decreases due to major buyers becoming sellers and mounting national debt and budget deficits, demand for dollars will also decline. Once the dollar starts to fall, Treasury yields will rise at a faster pace.
No Further Interest Rate Hikes Expected
According to Schiff, there will be no further interest rate hikes in light of current uncertainties such as conflicts in the Middle East. He even suggested that rate cuts may be necessary. Schiff has repeatedly expressed concerns about an impending bond market crash and an unprecedented financial crisis.
Hot Take: Brace Yourself for an Economic Downturn
Economist Peter Schiff has issued a stark warning about the crash of Treasuries and the subsequent decline of the US dollar, which will have significant repercussions on the American economy and standard of living. Schiff’s prediction of a crash in Treasuries indicates that the party is coming to an end, with severe consequences. It is crucial to prepare for this day of reckoning as it could lead to widespread economic turmoil.
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