Peter Schiff: The Data Looks Grim For The Dollar

"The dollar index was up today, but that doesn't mean the dollar was up. Gold tells you the dollar was down. What the rising dollar index tells you in an environment of a rising gold price is that the dollar is losing value. It's just losing less value than the euro- or losing its value more slowly than the euro or the pound or the yen. That's what's happening. I mean, if I'm going backwards at 10 miles an hour and there's a car next to me going backwards at 20 miles an hour, relative to that car, I'm going forwards. But I'm not. I'm actually going backwards. I'm just going backwards more slowly than the other car."

"Like I said with the canary and the coal mine, instead of recognizing, 'Gee, gold's going up because of inflation,' they're making up other reasons for why gold's going up. Like the Canary died of a heart attack. 'Gold's going up because of geopolitical risk.' They don't want to admit that gold's going up because of inflation, because the Fed is making a mistake, because these rate cuts are wrong, because they should be hiking rates. So they [the press] do this whole segment on inflation, and they don't even mention gold."

"They're now starting to say, 'Hmm, maybe we're not going to get any cuts.' They're not saying that we're going to get hikes. They are starting to question the validity of the cuts, but nobody is questioning the reality of the fact that they should never have stopped hiking- that that's what the rising gold price is signaling, that interest rates are too low and that they need to go up. Not just in the US, they need to go up everywhere. Everybody has to raise rates sharply. I'm not talking about 'mamby-pamby' quarter point rate hikes. We need 200 basis point hikes."

"If you were objective and just looking at the CPI, you would say, 'Oh, we better hike rates. Inflation is going up, not down.' But they're still saying, 'No, no, no, we're expecting to cut rates.' Why? Based on what would you expect to cut rates? Certainly not based on the data. The data doesn't support a rate cut."

"Imagine how much stronger going to be when the dollar is going down, and it will go down. And if anything, the rising gold price is what will cause the dollar to go down, because at some point when gold gets high enough, there will be a stampede into gold by foreign central banks, by the public, by hedge funds, pension funds, and endowments. And where are they going to get the money to buy all that gold? They're going to use dollars. So the dollar is going to get killed. It has no chance against gold."

This week Peter returned from vacation, and he was just in time for a surge in the price of gold.

He discusses the factors contributing to gold's record prices, the similarities between today and the 1970s, and data pointing to future inflation in America. 

https://schiffgold.com/peters-podcast/peter-schiff-the-data-looks-grim-for-the-dollar/