Following up on his earlier video report, Peter Schiff continues his discussion on the decline of the Dollar, which has now fallen to a 15-year low against the Yen.
As the Dollar continues to fall, Schiff predicts that oil prices will consequently go up, which will then provide the Federal Reserve with the excuse it is looking for to instigate Round Two of quantitative easing.
Schiff’s thinking on how the Fed will react goes like this: If energy prices go up there will be less money left available to consumers to spend on other goods; therefore demand for other goods will go down; therefore there will be deflationary pressure on the whole US economy; therefore we need to stimulate the economy with more inflationary quantitative easing to prevent deflation.
Needless to say, Schiff disputes this line of thinking with vigour:
You’d think a clever guy like Peter Schiff would be employed by the government to deal with the growing dangerous in the U.S. economy. But no.