Patrick Spring

Why Did Peter Schiff Think the U.S. Dollar Would Collapse?

To date your comments on Peter Schiff are right on the money. What you fail to recognize is the illusionary support for our dollar. One has to ask the tough question rather that look at the daily dollar\euro trade. Yes the dollar is strenghtening but compared to what? Other worthless fiat currencies are not a gauge one can utilize to make a determination. The fed is printing money as fast as it can and we continue borrowing money from other countries that we can not pay back. I'll say it one more time. We can not pay back the money we have borrowed from our forieng investors. It is a mathamatical imposibility. China on the other hand is also going through their own contraction and have plans of kick starting their economy with their own stimulus package. The big difference is they will not be borrowing any of it to dispurse into the economy. They sit on 1.9 trilllion american dollars that they will utilize. When this happens the value of the dollar will slowly decrease. Remember China has infastructure in place to ramp up when their economy turns. We on the other hand
have spent ourselves into a corner with very little infastructure to put people back to work. It's quite a sobering situation we find ourselves in with no short term solution.