Peter Schiff: Growing Problems Leading to US Dollar Crisis!

[youtube=https://www.youtube.com/watch?v=UBzZ_rZ7lC8]

• Peter Schiff: Growing Problems Leading to US Dollar Crisis! 
  by Greg Hunter’s USAWatchdog.com
  Money manager Peter Schiff says forget about the Greece debt questions; the problems in the U.S. are far worse.  Schiff contends, “I am even more concerned with the problems with the dollar.  The dollar is benefiting right now because most people are just concerned about the euro.  So, the dollar gets stronger because people sell euros and buy dollars, but they are missing the bigger picture.  We have even more advanced problems with our currency than they have in Europe with the euro.”
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  Schiff goes on to enumerate the financial problems the U.S. faces such as, “The degree of debt we have, the degree we are dependent on artificially low interest rates which are obviously unsustainable and the massive trade deficits we have chronically year after year.  Last month, we announced the biggest monthly trade deficit in our history.  These are growing problems that are ultimately going to lead to a U.S. dollar crisis.  Right now, people are confident in the dollar because they believe the Fed can raise interest rates, and we can actually afford to pay the higher rates–which we can’t.  We can’t do it.  If the Fed raises rates, we will have a financial crisis.  We would have no ability to service our debt if we had to pay a market rate of interest, but our creditors haven’t figured this out yet. . . .The real problems in Greece started when interest rates rose.  Greece had a lot of debt before rates went up. . . . They couldn’t repay the principal, but they could pay the interest.  They could at least pretend by paying the interest.  Well, that’s all the United States does.  We have no hope of repaying the principal.” 
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