Peter Schiff's Warning on the US Dollar
Economist Peter Schiff has issued a stark warning about the future of the U.S. dollar, stating that it is on the verge of a "historic crash." Schiff believes that there will be no soft landing for the U.S. economy, but rather a scenario of crash and burn. He points to several factors that contribute to this potential outcome, including increased inflation, rising interest rates, and elevated unemployment levels. According to Schiff, the U.S. economy is weaker than what the Federal Reserve believes, which will result in larger budget deficits and higher inflation.
Peter Schiff's Latest Economic Predictions
Peter Schiff, a renowned economist and gold enthusiast, has taken to social media to share his latest economic predictions. In a series of posts on platform X, Schiff stated that the U.S. dollar is on the brink of a historic crash. He believes that this will have a significant impact on the Federal Reserve and the economy as a whole, leading to a surge in inflation, interest rates, and unemployment. Schiff dismisses the idea of a soft landing and instead anticipates a crash and burn scenario.
Schiff also suggests that as inflation heats up, the world will turn to gold as the most viable alternative to the weakening U.S. dollar. He highlights the fact that the U.S. economy is already in a recession, despite the 5.2% growth in Q3 GDP, which was largely driven by government spending. Schiff argues that this growth is not sustainable and will only lead to higher inflation, as it relies on borrowed money rather than genuine economic progress.
In his posts, Schiff also comments on the recent rally in bonds following the Fed's acknowledgment of a slowing economy in their Beige Book report. However, he cautions bond investors to be careful what they wish for, as he believes that the economy is even weaker than what the Fed perceives. This will result in larger budget deficits and higher inflation, posing further risks to the U.S. dollar and the overall economy.
Schiff's Consistent Concerns
Peter Schiff has been consistently expressing concerns about the U.S. economy and the future of the U.S. dollar. In October, he stated that the dollar will plummet, taking the American standard of living down with it. He warned that individuals holding U.S. dollars would face significant losses as a result. Schiff has also been vocal about the potential for a severe recession, an inflationary depression, an unprecedented financial crisis, and a tragic ending. In September, he predicted a massive crisis that would drive a rush to exit the U.S. dollar.
What are your thoughts on economist Peter Schiff's statements? Share your opinions in the comments section below.
Frequently Asked Questions
Can I own a gold ETF inside a Roth IRA
This option may not be available in a 401(k), but you should look into other options such as an Individual Retirement account (IRA).
A traditional IRA allows contributions from both employee and employer. Another way to invest in publicly traded companies is through an Employee Stock Ownership Plan.
An ESOP is a tax-saving tool because employees have a share of company stock as well as the profits that the business generates. The tax rate on money that is invested in an ESOP is lower than if it was held in the employees' hands.
A Individual Retirement Annuity is also possible. An IRA allows for you to make regular income payments during your life. Contributions to IRAs do not have to be taxable
Is gold a good investment IRA?
If you are looking for a way to save money, gold is a great investment. You can diversify your portfolio with gold. There's more to gold that meets the eye.
It has been used throughout history as currency and it is still a very popular method of payment. It is often called “the most ancient currency in the universe.”
But gold, unlike paper currency, which is created by governments, is mined out from the ground. Because it is rare and difficult to make, it is extremely valuable.
The supply-demand relationship determines the gold price. The economy that is strong tends to be more affluent, which means there are less gold miners. The result is that gold's value increases.
On the flip side, when the economy slows down, people hoard cash instead of spending it. This leads to more gold being produced which decreases its value.
This is why investing in gold makes sense for individuals and businesses. If you make an investment in gold, you can reap the economic benefits whenever the economy is growing.
In addition to earning interest on your investments, this will allow you to grow your wealth. Additionally, you won't lose cash if the gold price falls.
What is the best way to hold physical gold?
Not only is gold paper currency, but it's also money. It's an asset that people have used for thousands of years as a store of value, a way to keep wealth safe from inflation and economic uncertainty. Today, investors invest in gold as part a diversified portfolio. This is because gold tends do better in financial turmoil.
Many Americans are now more inclined to invest in precious metals like gold and silver than stocks or bonds. While owning gold doesn't guarantee you'll make money investing in gold, there are several reasons why it may make sense to consider adding gold to your retirement portfolio.
Another reason is the fact that gold historically has performed better than other assets in times of financial panic. Gold prices rose nearly 100 percent between August 2011 and early 2013, while the S&P 500 fell 21 percent over the same period. During turbulent market conditions gold was one of few assets that outperformed stock prices.
Gold is one of the few assets that has virtually no counterparty risks. Your stock portfolio can fall, but you will still own your shares. Gold can be worth more than its investment in a company that defaults on its obligations.
Finally, gold offers liquidity. You can sell your gold at any time without worrying about finding a buyer, which is a major advantage over other investments. The liquidity of gold makes it a good investment. This allows for you to benefit from the short-term fluctuations of the gold market.
Should you open a Precious Metal IRA
Before opening an IRA, it is important to understand that precious metals aren't covered by insurance. If you lose money in your investment, nothing can be done to recover it. This includes losing all your investments due to theft, fire, flood, etc.
This type of loss can be avoided by investing in physical silver and gold coins. These items are timeless and have a lifetime value. They are likely to fetch more today than the price you paid for them in their original form.
If you decide to open an IRA account, choose a reputable company that offers competitive rates and products. Consider using a third-party custody company to keep your assets safe and allow you to access them at any time.
Do not open an account unless you're ready to retire. Don't forget the future!
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
- Saddam Hussein's InvasionHelped Uncage a Bear in 1990 – WSJ
- Want to Keep Gold in Your IRA at Home? It's Not Exactly Lawful – WSJ
3 Ways to Invest in Gold for Retirement
It's important to understand how gold fits in with your retirement plan. There are many ways to invest in gold if you have a 401k account at work. It is also possible to invest in gold from outside of your work environment. A custodial account can be opened by a brokerage firm like Fidelity Investments if you already have an IRA. If precious metals aren't your thing, you may be interested in buying them from a dealer.
These are the three rules to follow if you decide to invest in gold.
- Buy Gold with Your Money – You don't need credit cards, or to borrow money to finance your investments. Instead, invest in cash. This will help to keep your purchasing power high and protect you against inflation.
- Physical Gold Coins – Physical gold coins are better than a paper certificate. Physical gold coins can be sold much faster than paper certificates. You don't have to store physical gold coins.
- Diversify Your Portfolio. – Do not put all your eggs into one basket. This means that you should diversify your wealth by investing in different assets. This reduces risk and allows you to be more flexible during market volatility.
By: Kevin Helms
Title: Economist Peter Schiff: US Dollar Near ‘Historic Crash’ — ‘Forget Soft Landing, It’s Crash and Burn’
Sourced From: news.bitcoin.com/economist-peter-schiff-us-dollar-near-historic-crash-forget-soft-landing-its-crash-and-burn/
Published Date: Thu, 30 Nov 2023 04:30:36 +0000