Peter Schiff and Ron Paul Have a Dire Warning for America

Dire Warning for AmericaPeter Schiff Warns America Is on the Verge of Economic Collapse in 2016

Peter Schiff is back with more of his bloodcurdling revelations. This time, he made an appearance on Ron Paul’s Internet broadcast, the Ron Paul Liberty Report, where he was interviewed about his views on gold, the U.S. economy, and the Federal Reserve.

Schiff’s stance did anything but shift from where it has long stood: a dollar collapse is coming and gold prices, as a consequence, will skyrocket. This time, however, he went a step further to lay out his investment advice to viewers as to how they can survive the crisis:

“I think the U.S. economy is poised on a much bigger cliff than the one we went over in 2008. You and I know it was the Federal Reserve that laid the foundation for that crisis. Now, with the same policies, only worse, they’ve laid the foundation for a much greater crisis. I do believe this window of opportunity will be rapidly closing. People need to act quickly to get out of U.S. dollars, to accumulate foreign assets in places like Switzerland or Singapore or New Zealand, to buy some gold, and buy some mining stocks…

Everybody buys dollars when they’re worried about problems, even though our problems are bigger than the ones they’re worried about in Europe. Because the dollar is overpriced, we get to buy imports cheaper. We can keep these artificially low interest rates. We get to live beyond our means. There are countries you can invest in. In Europe, there’s Switzerland… They’re not doing everything perfect, but they’re in much better shape than the eurozone or the United States.” (Source: “Market Predictions – Danger Coming? With Peter Schiff,” Ron Paul Liberty Report, October 7, 2015.)

Schiff reiterated his take on gold that investors need to show more faith in gold over the U.S. currency as a safety reserve:

No one’s on a gold standard—it’s all fiat money. But it’s a question of degree… To hedge ourselves against all countries, we buy gold… The average investor doesn’t have anything in gold, and I think that’s completely foolish.”

Historically, we’ve witnessed gold and the dollar moving inversely in value. During the post-Lehman Brothers crisis of 2008, the dollar lost value while gold rallied. A similar trend is building up this year.

Gold - Spot Price Chart 15-Oct-15

Chart courtesy of

Schiff believes that the Fed has artificially inflated stock prices, which is why we’re seeing intermittent market rallies that will soon settle. In the long run, the dollar’s weakening strength will send markets crashing. How accurate is Schiff’s prediction? You can either stand on the sidelines to watch the event unfold or take his advice and prepare for it.

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