In talking about the current global economic crisis, Peter Schiff says if you think things are bad now, wait until the misguided policies of Barack Obama are implemented, which will cause the U.S. dollar to crash.
Schiff says Obama hasn't a clue as to the cause of the problem, and so will continue on and exasperate it, by putting into effect the huge domestic spending program which focuses on public works.
Essentially, what Obama is doing is asking the world to finance his programs on behalf of the American worker and consumer.
As Schiff says, the government has no wealth, it can only take money from the private sector and redistribute it to those they choose.
How this weakens the U.S. dollar, is somebody has to pay for that money. With foreign governments experiencing getting burned from the reckless spending of American consumers, which was encouraged by lenders who thought the party would go on and on, they won't be willing to continue to finance the silly policies of the American goverment, or the undisciplined habits of its consumers.
The solution to that, from the government's perspective, will be to print more money, which will put enormous downward pressure on the value of the U.S. dollar, as well as produce significant inflationary trends.
This in turn will cause trading partners to quit exporting goods to the country, as they won't want to trade in U.S. dollars, which will increasingly weaken.
American consumers will also stop buying, as the dollar won't buy much anymore. In response, Obama could foolishly attempt to put price controls in place, which will create shortages, along with a thriving black market in goods. That would also create an alternative form of currency or currencies.
Schiff's advice is to get out of anything related to the U.S. dollar.
For one of the best video presentations on the origin of the fall of the global economy, watch Peter Schiff being interviewed below.