Peter Schiff: US Treasurys Are ‘Junk,’ Dollar Headed for Collapse!

• US Treasurys Are ‘Junk,’ Dollar Headed for Collapse: Schiff!
  By Jean Chua Writer, www.CNBC.com 
  The greenback and the U.S. bond market are headed for a collapse as the U.S. Federal Reserve loses the ability to service the nation’s debt with “artificially low” interest rates, Peter Schiff, CEO of Euro Pacific Capital told CNBC on Wednesday.
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  “As far as I am concerned, U.S. Treasurys are junk bonds,” Schiff said on CNBC Asia’s “Squawk Box.”“And the only reason that the U.S. government can pay the interest on the debt, and I say ‘pay’ in quotes because we never pay our bills. We borrow the money so we pretend to pay, but the only reason we can do it is because the Fed has got interest rates so artificially low.”
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  The Fed has been keeping rates on benchmark 10-year Treasurys low by purchasing bonds via quantitative easing (QE) , and this will ultimately be the U.S. economy’s “undoing,” Schiff said.
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  “Unfortunately, we are going to get more QE than Rocky movies, because the only thing keeping this phony economy going is this QE,” he said. “And the minute you take it away, it’s going to collapse.”
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  Schiff’s comments come after two Fed officials warned on Tuesday that the U.S. could be heading for a “fiscal cliff” at the end of the year if mandated tax increases and spending cuts are implemented. On the same day, fund manager Bill Gross, who runs the world’s biggest bond fund, told CNBC that the U.S. will face a downgrade of its triple-A debt rating if it did not fix its fiscal situation.
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