Last year at the Vancouver Resource Investment Conference, Peter Schiff bet Brent Johnson a gold coin that the Fed’s next move would be a rate cut. At this year’s conference, Peter collected his gold coin.
Brent and Peter went on to debate the future of the US dollar. Brent says the dollar will go up this year. Peter thinks it’s going down. Peter put his money where is mouth is and went double or nothing against the dollar.
Peter’s Highlights from the Discussion
“The central bankers are going to continue pursuing this policy as long as they can do it without some type of a crisis that intervenes. But the problem is the longer they do it the worse it’s going to be.”
“I don’t think it can go on that much longer. Decades – no way! I mean, can it go on four more years. Sure.”
“The US market has never been this overvalued, overpriced as far as I’m concerned. You know, people were optimistic in 2000.”
“The market is very, very dangerous. It can easily go down. Trump will tweet as much as he can to try to prop it up. But whether that and the Fed’s printing press is going to be enough, we’ll see.”
“I think the whole fiat system that we have is nearing the end of its life. And the fact that were at these zero percent rates or negative rates, and all the stuff that’s going on is the death knell of this system, which was doomed from the start.”
“I think gold is going to reassert itself as the primary reserve monetary asset in the world for central banks and that threatens the dollar.”
“I do think that people have an unrealistic level of confidence in the US dollar, in the US economy and I think that’s going to change.”
“A lot of the central bankers are under the impression that a cheap currency is good because it enables you to export to the United States. But the United States is broke and can never pay for anything that it’s buying. I mean, this is an asinine system that exists right now where people think that weakness is a strength.”
“I’m not saying we’re the only people sinning. I just think we’re the biggest sinners out there. And I think we’ve led the way. I think a lot of people are emulating us.”
“Money is nothing. The value is production. It’s the real goods. Money just lets you divvy up what’s been produced. The wealth of the nation is the productive capacity – the plant and equipment, the factories. So, if you can produce it, you can consume it. The idea that whoever’s got the printing press gets to consume everything is nonsense.”
“When the world realizes that they have this wrong, that there is no normalization of US rates, that there is no shrinking of the balance sheet, that the balance sheet is going to grow forever, that rates are going to stay low forever. then that’s when the dollar is going to tank.”