covertress: Peter Schiff: the Chinese, Gold and the Next Financial Crisis, the Dollar

Wednesday, September 9, 2009

Peter Schiff: the Chinese, Gold and the Next Financial Crisis, the Dollar

Peter Schiff: "You talk about the Chinese government telling its citizens to buy gold. Why do you think they're doing that? They're doing that because they know they can't loose -- because they're holding all the dollars -- and the Chinese know they're going to dump them -- and when they do, the gold can only go up -- and the Chinese government wants its citizens to be prepared -- it wants its citizens to own real money -- so its telling them to buy gold."

"Initially, people expressed their fears by buying dollars -- and that was the wrong thing to do. Now people are getting rid of dollars and they're buying gold or they're buying foreign currencies -- but, this is going to end in a real crisis. The financial crisis that we had in 2008, that was the warm up. The main event is the crisis coming in the U.S. dollar. That's when the U.S. government needs a bailout. That's when we really have problems with interest rates spiraling out of control across the board for U.S. treasuries -- and with consumer prices in the United States rising at such a rapid pace -- that we can't even keep track of how fast they're going up. That's what we've got in store for us."