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IPFS News Link • Gold and Silver

Peter Schiff: Gold Will Explode; The Dollar Will Implode When The Markets Figure This Out

• Zero Hedge - Schiff Gold

The Federal Reserve wrapped up another meeting without making any changes to its current extraordinary, loose, inflationary monetary policy. But the central bank did hint that it may start tapering its quantitative easing program "soon."

That was enough for the markets. They continue to expect the Fed will tighten monetary policy and fight surging inflation. Gold sold off after the FOMC statement came out, dropping about $10.

The gold market has battled these headwinds for months. Every time the Fed hints at tightening, gold sells off. Every time inflation numbers come in hot, gold sells off. This doesn't make sense. Why would investors sell an inflation hedge during an inflationary period? Because they honestly think the central bank can and will sweep in and successfully fight inflation.

1 Comments in Response to

Comment by Ed Price
Entered on:

I'm surprised that Peter Schiff hasn't figured out yet, that all bank loans are creations of new money. If you don't sign the promissory note, do you get your money? When you sign it, do you get your money? Even trade, your private money (signed promissory note) for their public money. You prepaid your loan, so there isn't really any loan to repay. Your repayment over the years is really a credit purchase of two kinds: 1) standard credit with the credit reporting agencies; 2) credit that keeps you from being sued for not making the agreed on loan payments. If you know what you are doing in court, they will dismiss the charges when you bring the proof of prepayment. You might have to sue the credit agency for messing with your credit rating.