The congressional candidate is the latest to chime in on perspectives of where gold is going. This ties in with our expectations that the Fed's generous excess liquidity, coupled with a declining dollar, will likely see gold as the primary focus on new capital flows. If gold does really hit $5,000 expect a military coup by the various governors of the Fed.
As to Schiff's contention that a plunge in the dollar will be accompanied by Chinese dumping of Treasuries, we are not so sure it is that simple. Bernanke is well aware of the game of poker (where courtesy of the reserve currency he can raise into infinity, even on blind), and this is the only bluff he would be unable to respond to. Which is why the tacit assumption that China will keep USTs in exchange for Geithner backing off from allegations of renminbi manipulation, seems very sensible.
Either way, if Peter Schiff ultimately does get elected into Congress, it will be amusing to watch the Grayson-Schiff financially astute tag team take on the rest of their underedcuated associates, and hopefully, the administration and its flawed economic policies.