Peter Schiff, CEO and Chief Global Strategist of Euro Pacific Capital Inc., on Tuesday claimed that Federal Reserve Chairman Ben Bernanke was “a much bigger threat to the U.S. economy than the fiscal cliff.”
Why? Simple: Ben Bernanke is addicted to quantitative easing ("QE").
“[I]if it wasn’t for all his accommodation, all the QEs, we wouldn’t have to go over the fiscal cliff,” said Schiff on CNBC's “Futures Now.”
“In fact,” he added, “ultimately because of what the Fed has done, we’re going to have to go over a much bigger cliff.”
Schiff has repeatedly claimed that the Fed’s love of money-printing will cause runaway inflation. And because he believes this will be the inevitable outcome of Fed policy, he advocates gold.
“If we avoid the cliff, that is very bullish for the gold market because that means that trillion dollar-plus deficits will perpetuate, and these big deficits are what’s undermining the dollar because the Fed has to print money to finance them,” Schiff said.
“The more money they create to buy up the bonds that nobody wants, the higher the price of gold will go,” he added.
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