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

Peter Schiff: Americans Are in for a Rude Awakening

On Jan. 13, Peter Schiff appeared on RT Boom Bust with Bubba Horwitz to talk about the yuan, the dollar, the stock market and the US economy. Peter said the dollar is eventually going to collapse and it’s going to be a rude awakening for Americans. The Chinese yuan has been gaining strength against the […]

READ MORE →

Peter Schiff: Bad Monetary and Fiscal Policy Is Bullish for Gold

Is now the time to get into gold? Peter Schiff appeared on Fox Business last week to talk about it with Charles Payne. Peter said the current bull run in gold started about four years ago when the Federal Reserve started raising interest rates in 2015. Over the past four years, the price of physical […]

READ MORE →

Peter Schiff: As a Hedge, I Favor Gold

Gold has been surging since a US airstrike killed a prominent Iranian general. After Iran retaliated with missile strikes on US bases in Iraq, gold briefly pushed about $1,600 per ounce — an eight-year high. Peter Schiff appeared on RT Boom Bust along with Bubba Horwitz on Monday to talk about the current geopolitical situation and […]

READ MORE →

The Bubble (Video)

Everybody knows that the 2008 financial crisis was caused by “deregulation” and “greed,” right? Except that it wasn’t. A film titled The Bubble offers a non-partisan, critical examination of the policies and events that led to the biggest crash since World War II. Produced by Jimmy Morrison and co-written by Tom Woods, the film features […]

READ MORE →

Peter Schiff: Own Your Gold Before the Stampede so You Don’t Get Trampled

Peter Schiff recently recent sat down and talked to Daniela Cambone at Kitco News about the economy, politics, and gold. In part 1 of the interview, Peter said the Fed was not going to be finished cutting interest rates until it gets to zero. That will have serious ramifications for the US economy. With that in […]

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