Fund Manager Schiff: The Next Crash Will Bring Down The Fiat Money System
The fiat currency system may not survive the next recession, according to investment guru Peter Schiff, who believes technology will enable the return of gold and silver as globally accepted forms of currency.
“I think that when the collapse in the dollar occurs, there will be a widespread return to using gold and silver as money, or at least having other currencies backed by gold and silver as money again,” Schiff said in an interview.
“With today’s technology, the transition will be much easier than if we had tried to do this in the ’80s or ’90s.”
Peter Schiff on the demise of the dollar
Schiff, the CEO of U.S. investment advisor and broker-dealer Euro Pacific Capital, said fiat (paper) money had been propped up by regulators such as the Fed.
He believes the imminent demise of the U.S. dollar as a global currency is due to U.S. “fiscal profligacy” that has pushed the budget and trade deficit beyond the limits, leaving the dollar at the mercy of foreign reserves held by other countries.
“I personally think the dollar is the most dangerous currency of all because of what the Federal Reserve has been doing for years at unprecedented levels. Gold and silver offer the only protection from outright currency collapse and bank failure,” he said.
Listen to GHOGH with Jamarlin Martin | Episode 65: Tunde Ogunlana
Part 2: Jamarlin continues his talk with Tunde Ogunlana, the CEO of Axial Family Advisors, a wealth planning firm. They discuss how QE or quantitative easing (money printing) is likely to look different in the next financial crisis in America and some tax benefits with side hustles. They also discuss why estate planning is a selfless act.
The global economy is expected to slide into a recession in 2020 pulled down by the U.S.-China trade war and a confluence of factors including high debt levels among countries and Brexit in the U.K.
Economists polled by Bankrate see a 41 percent chance the U.S. economy will slip into a recession by the November 2020 presidential election.