Investor Warns Dollar Rally Coming to an End
Peter Schiff, president of Euro Pacific Capital and an outspoken opponent of all the government intervention in the marketplace, warned the dollar is highly susceptible to collapse. Over the past year, the value of the dollar has rallied a little over 17 percent ‚Äď but it‚Äôs a faux rally, according to Schiff.
‚ÄúThe dollar is rallying for the same reason that real estate rallied or that dot coms rallied ‚Äď it‚Äôs not because of the fundamentals,‚ÄĚ Schiff said. ‚ÄúIt‚Äôs temporary. You know, you see a lot in the market. Sometimes there‚Äôs a head-fake, you get a news item of the day ‚Äď you see a move and then the real move is in the other direction. You got to fade this rally in the dollar. It can‚Äôt last.‚ÄĚ
According to Schiff, the
‚ÄúOnce this rally is exhausted, the dollar is going to collapse,‚ÄĚ Schiff added. ‚ÄúLook at the trillions and trillions of dollars being hoarded by central banks. Look at
Schiff maintained American behavior and federal government policy decisions will discourage other nations from lending to the
‚ÄúThe world has learned a valuable message and that‚Äôs don‚Äôt lend Americans any more money.‚ÄĚ
Although there has been little discussion of the dollar as other investments have fallen in recent months, Gerald O‚ÄôDriscoll Jr., a senior fellow at the CATO Institute, had a similar analysis of the dollar. He told a panel at CATO‚Äôs 26th Annual Monetary Conference the dollar was currently trading in a bubble.