Economist Peter Schiff has warned that a death blow is coming for the U.S. dollar and the USD will lose its global reserve currency status in this financial crisis. “People are still reluctant to call it a financial crisis, but that’s exactly what it is, except it’s bigger in scale and it’s going to be far more impactful than the 2008 crisis,” Schiff stressed.
Peter Schiff on U.S. Dollar’s ‘Death Blow’
Economist and gold bug Peter Schiff explained that a death blow is coming for the U.S. dollar as a global reserve currency in a recent interview with Commodity Culture, which he shared this week.
Regarding whether de-dollarization is happening and whether it’s a real threat to the U.S. dollar’s global reserve currency status, Schiff said: “The only thing that’s surprising about the dollar’s reserve status is that it still has it. Despite everything that we’ve done, we still haven’t lost that privilege.” He elaborated:
I think the current financial crisis which just started is going to ultimately deliver the death blow to that status.
The economist added: “People are still reluctant to call it a financial crisis, but that’s exactly what it is, except it’s bigger in scale and it’s going to be far more impactful than the 2008 crisis.” He cautioned:
It’s probably going to result in even more aggressive and reckless monetary and fiscal policy. And this time, it’s going to take the dollar’s reserve status down with it.
“That’s going to really complicate things here in the U.S. because it’s going to send inflation much, much higher and American standards of living much lower,” he opined.
Responding to a question about whether the U.S. dollar is at risk of hyperinflation, Schiff detailed: “There’s always a risk. For every country that issues fiat currency, inflation is always a risk. The question is how high is the probability.” The economist continued:
I think the risk is a lot higher now than it’s ever been, and in order to avoid that outcome, it’s going to required some very difficult political decisions and choices that need to be made to avert that outcome.
Schiff has consistently warned about an incoming financial crisis. Earlier this month, he advised people to gid rid of their U.S. dollars now. Last month, he warned of the biggest economic disaster in U.S. history.
What do you think about Peter Schiff’s warning? Let us know in the comments section below.
A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.