Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Chinese Yuan Devaluation Is Minor; US Dollar Bubble Is Growing (Video)

  by    0   1

On CNBC’s Futures Now, Peter Schiff shared his take on the Chinese devaluation of the yuan and how it affected the price of gold. Once again, Peter reminded us that gold may not have moved up very much in terms of the US dollar, but in the Chinese currency the yellow metal rose significantly.

While the world still believes the US dollar is the strongest currency amidst an international currency war, Peter warns that the yuan devaluation is just temporary. Eventually, the Federal Reserve will start a new round of quantitative easing, and the United States will “win” the war by pricking the dollar bubble and destroying the value of its currency.

Highlights from the interview:

“[Gold] is moving up a lot in terms of the Chinese yuan, because they devalued yuan. Gold is up in terms of the dollar today, so it’s up even more in terms of yuan. The reason it’s not making a bigger dollar move is because China’s devaluation is also impacting other currencies, particularly commodity-linked currencies. Look at the Australian dollar. Look at the Canadian dollar. Gold is making a huge move in those currencies as well. But I don’t think this is the beginning of future devaluations. This is a small move. Remember, the Chinese yuan has gained tremendously in value along with the dollar against a number of currencies. So the Chinese are reacting to weakness in other currencies. it’s not really a dollar story. I do believe the dollar is in a bubble, and when this bubble bursts, I think you’re going to see a substantial revaluation upward of the yuan against the US dollar ultimately…

“I don’t think it matters at all [what the Fed will or won’t do]. I’ve been saying that the Fed has been bluffing about its ability to raise interest rates all along. I think the Fed appreciates that this is a gigantic bubble, and any significant rate hike would prick it. In fact, even a quarter of a point rate hike might be a big enough pin to prick this bubble. Which is why all the Fed does is talk about raising rates… In fact, I think if the Fed does raise rates whether in September or December, the next move after that is going to be to move them back down to zero in preparation for QE4, because this economy will be in recession if the Fed raises rates. And it will be in recession even if they don’t raise rates…

“Unfortunately, I think America is going to win the currency war, which means Americans are going to lose. It’s a race to the bottom, so that’s the one war you don’t want to win. Because the objective is to kill yourself. I think we’re going to win. But right now we have a dollar bubble…

“Part of the goal of QE was to inflate the stock market bubble. Ben Bernanke admitted that himself. So if the air comes out of that bubble, because they threatened to prick it, then yes, they’re going to have to do QE4 to blow it back up again…”

Get Peter Schiff’s latest gold market analysis – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning more about physical gold and silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

New Peter Schiff Interview: We’re Paying the Price for Deficits

Last week, Peter was interviewed on Speak Up with Anthony Scaramucci. In their conversation, they covered a wide range of important topics, including inflation, the fate of the dollar, and the trade-offs between gold and cryptocurrency. 

READ MORE →

Peter Schiff: Gold is the Canary in the Economic Coal Mine

This weekend, Todd Sachs interviewed Peter on the state of the economy. They discuss the parallels between now and the 2007-2008 housing crisis, the role of economic sentiment in voters’ opinions, and why foreign central banks are losing faith in the dollar.

READ MORE →

Gold Hits New All-Time Record High

Gold hit a new all-time nominal high, surpassing the previous record set in December of the previous year. The precious metal’s price reached approximately $2,140, indicating a robust and continuing interest in gold as a safe-haven asset, despite a rather peculiar lack of fanfare from the media and retail investors. This latest peak in gold […]

READ MORE →

New Peter Schiff Interview: California Dooms Workers and Congress Kicks the Can Down the Road

Peter recently appeared on OAN’s Real America with Dan Ball to discuss the minimum wage, government spending, and inflation. He first points out the blatant corruption of the California state government, which recently passed a $20 minimum wage for all fast-food restaurants except those that bake their own bread. The state’s governor, Gavin Newsom, has […]

READ MORE →

Peter Schiff: Household Debt Highest In Nation’s History

In a recent interview, Peter Schiff was featured on Real America with Dan Ball. 

READ MORE →

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Call Now