Sell dollars and buy silver. That’s Goldman Sachs’ recommendation.
We’ve been warning about a dollar collapse. Now the mainstream is even getting bearish on the dollar.
US stock markets continued their inexplicable rally despite the economic destruction wrought by the coronavirus-induced shutdown. The S&P500 is only down about 3.5% on the year and the NASDAQ is actually up. As a result, a lot of investors seem to be getting out of safe havens, including gold. But in his podcast, Peter Schiff explains why selling gold is a mistake if you understand what’s really going on. In a nutshell, stocks are rising because the Fed is printing money. And no matter what the mainstream says, money printing matters.
The Chinese government has launched a pilot program for a digital version of the yuan. The virtual currency ups the ante in the war on cash and creates the potential for the government to track and even control consumer spending. It also raises some concern that the Chinese could threaten dollar-dominance.
On Friday afternoon, Federal Reserve Chairman Jerome Powell did a Q&A session with Princeton economist Alan Blinder. Powell admitted that the central bank had “crossed a lot of red lines,” but insisted he was comfortable with the actions given “this is that situation in which you do that, and you figure it out afterward.”
In his podcast, Peter Schiff called it the Nancy Pelosi version of monetary policy. “We need to print the money to see where it goes.”
The printing presses are running at full speed as the Federal Reserve creates money out of thin air at an unprecedented rate. Peter Schiff recently appeared on Kitco News to talk about the impact of all money-printing, borrowing and government spending. Somebody has to pay for this and we all will. In fact, a lot of people will be wiped out by the inflation tax.
Despite Fed Chair Jerome Powell throwing cold water on the prospect of a quick economic recovery last week, there is still a lot of optimism out there. There is also an appalling lack of concern about all of the debt and money printing going on. In a recent podcast, Peter said nobody expects this to lead to an inflation crisis or a dollar collapse. But what can’t last forever won’t. And it won’t be a crisis — until it becomes one.
Last year, we reported extensively on a push toward de-dollarization by countries like Russia and China and their desire to undermine the ability of the US to weaponize the dollar as a foreign policy tool. Europe was even starting to push to dethrone the dollar as the reserve currency.
With the Federal Reserve running the dollar printing press at full speed and the US government expanding the national debt into the stratosphere, there are renewed calls for a currency to replace the dollar as the world reserve.
The mainstream just went super-bullish on gold.
Bank of America raised its 18-month price target to $3,000 per ounce in a report titled, “The Fed Can’t Print Gold.”
Earlier this year, Ray Dalio quipped that “cash is trash.” During a recent Reddit “ask me anything” session, Dalio doubled down, warning that the rush into the US dollar is a mistake.
Why?
Because the Federal Reserve has fired up the printing press and is pumping out cash at a dizzying pace.
All eyes have been on the stock market in recent weeks as it has reflected the fears about the coronavirus-induced economic shutdown and the hopes of massive stimulus. It’s been quite a rollercoaster ride. But in his podcast on March 27, Peter Schiff said there’s an even bigger problem looming on the horizon that people aren’t paying any attention to – the potential destruction of the dollar. He said Americans are in for a rude awakening.