Peter Schiff – Huge Crisis-Gold Will Routinely Be Moving Up at $100 Clips
by Greg Hunter
Money manager Peter Schiff says don’t believe the so-called “Brexit” was the real cause of the recent chaos in the financial markets. Schiff explains, “If the global financial system and the markets were healthy, ‘Brexit’ would be a non-event. I mean what difference does it make in the scheme of things if the UK is not part of the EU? In a healthy economy, it would just shrug it off, but because we have anything else but a healthy financial system, it’s all a gigantic bubble. It’s a house of cards. That’s how fragile it is, and it’s all propped up with cheap money, negative interest rates and quantitative easing. Everybody is confident that the central banks and politicians can keep these bubbles in the air that they are juggling. Now, all of a sudden, something goes wrong that they didn’t expect. It shows that the government is losing control, and this is the wake-up call. This is what has everybody so scared. This is the match that ignites the powder keg, but the powder keg was there all along.”
So is the Fed going to start more easy money and printing money because of the current financial chaos? Schiff says, “It may be the excuse because they were going to do it anyway. The market is now pricing in a higher probability of a rate cut than a rate hike, but I said that back in December. When the Fed first raised rates (December 2015), I said the next move is likely going to reduce them and not a second hike. Now, the markets are coming around to my way of thinking, but it took Brexit to get them there. I said back then it didn’t matter how we got there, the fact is, we are going there. The Fed was just looking for an excuse to save face.