Peter Schiff: The Dollar Will Win the Race to the Bottom

Earlier his week, China made the decision to devalue their currency in the hopes of increasing exports, and improving their ailing economy. It proved to be the largest single day decline of the renminbi in over two decades, which led to the decline of several major currencies, the tumbling of multiple stock markets, and an increase in value for gold and silver. In a nutshell, China just started a currency war, and a race to see who can devalue their currency the most before cracking.

Market analyst and investor Peter Schiff seems to think that the winner of this race (if you can call it winning) will be the United States. Contrary to the Fed’s claims that they’re preparing to raise interest rates, which would likely lead to a genuine economic recovery, Schiff thinks that we’re in for more quantitative easing to compete with China and inflate our markets. “That is what the drug addicts on Wall Street want. They want another fix, and I think the pushers are going to provide it, unfortunately.”

Basically, the dollar is in a bubble, thus it already has potential to fall faster than any other currency. All it needs is a pinprick to deflate it, courtesy of the Federal Reserve. “They’re getting ready to do QE4. The balance sheet, which is now what? Four and a half trillion, is going to explode, ultimately closer to ten trillion. I think the currency speculators are betting the wrong way. And so when they figure it out I think the bottom is going to drop out of the dollar, and you know, we’re going to win.”