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 monthly Gold Videocast.
Interested in learning more about physical gold and silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

Peter Schiff: The Bubble Keeps Getting Bigger (Video)

Peter Schiff recently appeared on The Street with Scott Gamm to talk about the stock market. Peter’s analysis was simple and succinct. Well, the bubble keeps getting bigger.” Related

READ MORE →

Peter Schiff: Stock Market Pushed by “Irrational Exuberance” (Video)

So what are we to make of the continuing stock market climb? Peter Schiff summed it up succinctly in a recent interview on Fox Business. Well look, I think it’s a bubble.” Related

READ MORE →

Peter Schiff: Gold Is Going to Go Way Up, Not Down (Video)

Harry Dent is a long-time gold bear. He used to say gold would fall to $250. He’s revised that prediction up a bit, but still calls for a steep decline in the price of the yellow metal – perhaps to as low as $700. Peter Schiff took on this notion during a recent interview on RT’s […]

READ MORE →

Ron Paul on the Stock Market: Delusions and the Madness of Crowds (Video)

Stock markets continue to surge higher on a seemingly endless upward trajectory. On Tuesday, the Dow Jones crossed the 23,000 mark for a time and closed just below that threshold at 22,997. It almost seems like this can go on forever, but Ron Paul said it would eventually come to an end during an interview on […]

READ MORE →

Peter Schiff: 2008 Was Just the Opening Act (Video)

On Sept. 22, Peter Schiff spoke at the Nexus Conference in Aspen, Colorado, and argued that the financial crisis in 2008 was just the opening act. The real crisis will result from the way the government and the Federal Reserve responded to the 2008 crash. I don’t think 2008 was the crisis. I think that […]

READ MORE →

Leave a Reply

Your email address will not be published.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

Free Newsletter & Notification of Special Deals
RSS Feed
LINKEDIN
YouTube Channel
YouTube Channel
Google+
Google+
https://schiffgold.com/interviews/chinese-yuan-devaluation-is-minor-us-dollar-bubble-is-growing-video
Call Now