PETER SCHIFF

PETER SCHIFF

Sunday, May 24, 2009

The world doesn’t need our consumption, we need their production


The Free Fall of the Dollar :
“When the U.S. decouples, the world will thrive,”
“The world doesn’t need our consumption, we need their production. The global economy is fine without propping up the U.S. economy. We are in serious, serious trouble.”

Schiff said it’s not only a possibility, but “it’s inevitable” that Brazil and China are eventually going to dump the dollar as the international currency of choice.
“As far as I’m concerned, the U.S. has already lost its AAA rated status,” said Schiff.

3 comments:

  1. the dollar is fine during deflation. it is the commodity none can obtain from banks due to their derivitive exposure. brazil and china have spent dollars on cheaply priced ( in us dollars ) copper, gold, agriculture etc. there is no dumping of dollars and no other reserve currency. gold is fine small time but you can't take it to the grocery store ( yet ). deflation = strong USD. Inflation probably is many years away.

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  2. AnonymousMay 24, 2009

    Well it seems to me that we in Malaysia are suffering from high inflation and boom in our economy, we have to import in foreign labour for undesirable jobs that none of our citizens wants to work at. China, Indonesia and Singapore are also booming, an example would be a dessert I bought a month ago was $ 1.20 in local currency and currently is selling at $ 1.80 which shows high inflation... The job market is also good with 2 jobs available for 1 worker, leading to high wage growth, hence we have to import in labour. We found out after March 2009 that we were not going to go into a Recession, imagine our surprise when we were told we were going to go into a Recession, we suspect we were saved by China's boom and growth !

    ReplyDelete
  3. AnonymousMay 24, 2009

    Well it seems to me that we in Malaysia are suffering from high inflation and boom in our economy, we have to import in foreign labour for undesirable jobs that none of our citizens wants to work at. China, Indonesia and Singapore are also booming, an example would be a dessert I bought a month ago was $ 1.20 in local currency and currently is selling at $ 1.80 which shows high inflation... The job market is also good with 2 jobs available for 1 worker, leading to high wage growth, hence we have to import in labour. We found out after March 2009 that we were not going to go into a Recession, imagine our surprise when we were told we were going to go into a Recession, we suspect we were saved by China's boom and growth !

    ReplyDelete

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