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Peter Schiff: major move coming — Dollar Collapse

Peter Schiff:

“The major move that’s coming with the dollar and gold is way up in gold and way down in the dollar. All the economic growth that we had since the bursting of the tech bubble was phony. All we did is borrow trillions of dollars from the rest of the world, we blew the money on consumption, and now all those Greenspan chickens are coming home to roost….The problem is that we borrowed and spent all that money is the first place and we never would have done it were it not for the most irresponsible monetary policy in US history.

“What’s actually happening right now is the world is basically realigning itself. The global economy has been the function of the world saving and producing the America borrowing and spending, but now we’re too broke to pay back the money; we have nothing to show for all our borrowing because we spent it, and this is causing a lot of angst around the world — when you loan somebody money and they can’t pay you back there’s a problem. But the credit crises is real and it can’t be solved by the government printing money. The credit is gone because the savings is gone. What the market is trying to do is bring about a badly needed recession, trying to get Americans to stop spending and start saving their money again, but the government is resisting it, and the reason the dollar is gonna fall through the floor is because the trillions of dollars the government is trying to create to try and replace all the savings that we don’t have is very negative for the dollar. And once this market noise is over, foreigners are not going to bu our currency, they’re not going to buy our bonds, the only buyers are going to be the FED.”

Rick Santelli, the only guy on CNBC who has any sense of reality and vision responds:

“Peter’s on to something that I really agree with, that the end game here is that all of these countries recycling our dollars back to support our current account deficit, our trade deficit, even our budget deficit, that once the realignment of the euro and the pound is done, they aren’t going to do that, so I agree with him. There’s gotta be a major higher interest rate environment around the globe when they stop supporting each other’s debt habits.”

Tags: bank bailout, collaspe, dollar, Economy, fed, gold, inflation, Jim Rogers, leman brothers, Marc Faber, Peter Schiff, Ron Paul