Peter Schiff, CEO of Euro Pacific Capital, lambasted the Federal Reserve on Monday and said that the United States dollar is going to collapse unless Fed Chairman Ben Bernanke stops stimulating the economy and inflating the money supply.
“The dollar is going to collapse if [Fed Chairman] Ben Bernanke doesn’t reverse course,” Schiff said in an interview with Yahoo! Finance. “And if he does, the whole phony economy that has been built on the foundation of stimulus is going to collapse as well.”
During a policy meeting last week, the Federal Reserve confirmed that quantitative easing will persist and didn’t provide any hints as to when it will end – Bernanke has consistently stated that it’s an indefinite policy.
“Ben Bernanke believes that somehow he can withdraw the stimulus and the economy will keep on expanding. It’s impossible because we have an economy that’s of stimulus, by stimulus and for stimulus,” explained the 2010 Republican Senate candidate.
Although the U.S. dollar has gained against other currencies within the past year, Schiff believes that eventually investors will get wise to the Fed’s disastrous policies and get out of the greenback immediately.
“People are going to realize, or call the Fed’s bluff, that our economy is stimulus-based,” stated Schiff. “There is not a real exit strategy. The Fed is going to print money indefinitely.”