Lou Siegs

This Is Just the Beginning

Schiff appears to relish in the prediction that a falling dollar will cause rampant inflation. In fact, the US has supported a cheap dollar for years to sell its products overseas. All the BRIC countries understand when we buy their products with cheap dollars their currencies do not inflate. So as they build dollar surpluses the deal is they must purchase US Treasuries to keep the "win-win" cycle in tact. At some time in the future, the US will slowly reduce its role as dominant world consumer. Then, the dollar will rise in value as we export more and our deficits gradually reduce. But, this is a long term scenario. Schiff simply ignores the success of a multilateral effort to reflate hard assets depends entirely on united and coordinated international support of the dollar. It is in the world's self interest to diligently follow this course.