Schiff on US Rating Downgrade, Crash, Dollar Collapse
Economist and gold bug Peter Schiff has expressed concerns about the U.S. economy and the potential collapse of the U.S. dollar in a series of tweets. Fitch Ratings recently downgraded the United States’ long-term foreign-currency issuer default rating from AAA to AA+, which Schiff believes is insignificant. He argues that the primary risk is currency depreciation rather than default. Schiff also criticizes Fitch’s assessment of the U.S. outlook as “stable.”
- Treasuries are considered junk bonds and are at risk due to the trajectory of U.S. government deficit spending.
- Schiff believes that a dollar collapse is inevitable given the current deficit spending.
- Schiff warns that rising Treasury yields will lead to larger federal budget deficits, a weaker economy, and higher inflation.
- He predicts a financial crisis, higher unemployment, and lower stock and real estate prices.
- Schiff also suggests that once the dollar falls with Treasuries and gold rises with oil, a crash will occur.
In conclusion, Peter Schiff’s warnings indicate his belief that the U.S. economy is heading towards a crash and that the dollar’s value is at risk of collapsing due to deficit spending and other factors. He emphasizes the importance of monitoring currency depreciation rather than default. These warnings serve as a cautionary reminder for crypto readers to stay informed about potential economic risks.
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