I know we’ve been hearing this for years, but I think the dollar as world’s reserve currency is on the way out soon.
we may be right, unfortunately.
Peter Schiff: The Most-Anticipated And Least-Significant Rate-Hike Ever
There was some speculation that the central bank would lift off with a 50 basis-point hike before Russia invaded Ukraine. But Peter said even that would have been too little, too late to derail this juggernaut of inflation.
The bond market appears to be correctly pricing in a recession. But Peter said bond buyers are still missing the boat.
I agree that bond investors are correct; a recession is coming. But where bond investors are missing the mark is to believe that the arrival of recession means a departure of inflation.”
Peter said he thinks recession is going to exacerbate the inflation problem. That puts the Federal Reserve in a difficult position.
As the US economy weakens, that’s going to put more upward pressure on the budget deficit. The government is going to collect less in the way of taxes. It’s going to be spending more as these stabilizers kick in as the economy weakens. So, the deficits are going to be getting bigger, which so going to be putting more pressure on the US dollar to go down. And as the US dollar really starts to fall, that’s going to be putting more upward pressure on prices.”
Just because the Fed is hiking rates because of inflation doesn’t mean these rate hikes are actually going to work at putting out the inflation fire. They’re not. The Fed is simply doing the minimum that it can get away with and try to save face.”
https://www.zerohedge.com/markets/peter-schiff-most-anticipated-and-least-significant-rate-hike-ever