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Schiff Speaks on The Sherman Show about Gold, Trump, Bubbles and the Next Crisis


Schiff Speaks on The Sherman Show about Gold, Trump, Bubbles and the Next Crisis

PR Newswire

LOS ANGELES, Aug. 2, 2018 /PRNewswire/ -- Economist, author and financial broker/dealer Peter Schiff shares his provocative and iconoclastic views on markets, investing and politics in the latest edition of The Sherman Show podcast with DoubleLine's Jeffrey Sherman and Sam Lau.

Schiff pulls no punches in his conversation with Mr. Sherman, deputy chief investment officer of DoubleLine, and Mr. Lau, co-portfolio manager of the DoubleLine Strategic Commodity Fund. Among the highlights, Schiff explains why he believes "gold is going a lot higher," the Federal Reserve has been monetizing the federal debt, and while Trump's election staved off recession, his tax cuts and massive spending are exacerbating a years-long fiscal binge which will end in a recession more severe than the so-called Great Recession of 2008-2009.

The last recession, Schiff says, was just the "opening tremor…. Anybody who thinks that was the end of the crisis – that was just the beginning. The main event is coming up."

That main event, according to Schiff, has been decades in the making. Schiff traces the seminal offense to 1971 when the U.S. abandoned the gold standard, completing the dollar's transformation into a fiat currency. Since then, "money supply growth has been off the charts," enabling massive debt-financed spending by Washington, Schiff says. Meanwhile monetary policies at the Fed, he argues, have kept interest rates artificially low. This has starved the U.S. of the savings needed to build America's economy and given rise to asset bubbles, including the housing bubble of the previous decade. In passing, Schiff argues that this poor return on capital is the real culprit behind America's trade deficit, not cheating trade partners south of the U.S. border or overseas.

The ultimate bubble is the dollar, according to Schiff. This is the basis for his bullish outlook on gold. He expects the price of gold to surge once market confidence in the value of the dollar is shattered. The bursting of the dollar bubble, Schiff notes, will have important consequences for other asset prices such as oil. "If Trump is upset about the price of oil now," Schiff says, "wait till you see how much higher it's going to be when the dollar bubble pops."   

To listen to the complete podcast, please go to the DoubleLine podcast page:

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