If the feds keep printing dollars to prevent banks from going insolvent due and plans to borrow at 1 trillion dollar defecits, our currency will devalue and the world will drop it as a reserve currency. Devaluation means all our imports (oil, raw materials, food, etc) will inflate. Weak dollar played a role in increasing our oil price during the last energy crisis. The residential mortgage crisis is not the last threat to our banks, we have a commercial real estate mortgage crisis and credit card default crisis looming as retail sales dropped, and more people become unemployed. Peter Schiff is not crazy.
This is no surprise. Why do you think the Fed stopped reporting M3 in 2006? The Bank of England just started doing the same thing this year. They don’t want the people to know how much money is actually in circulation.
Yep! What’s the first thing people stop paying when they are in a survival mode, credit cards.