- FedRes Creating Money Out of Thin Air Will Lead to Collapse of US Dollar – Peter Schiff
A selloff and political dynamics are driving the stock markets right now, according to veteran stockbroker Peter Schiff. He explores why the markets and the economy are so dependent on, and desperate for, stimulus.
Two factors have driven stocks lower, Schiff said – the lack of progress on a stimulus deal and a surge in Covid-19 cases. The selloff could have been worse if it wasn’t for a big move out of recovery stocks into the ‘stay-at-home’ stocks benefiting from the pandemic. However, Schiff wonders how long these stay-at-home stocks can continue to buoy the market given that they are already significantly overvalued.
“Of course, if all of the people who are staying at home and shopping never go back to work and never actually have a job, and the only money they have to spend is the money the Fed creates out of thin air, eventually the dollar is going to collapse and their real purchasing power is going to go down along with it,” he said.