Gold Will Go Ballistic When Markets Realize The Fed Has No Exit Strategy

Chris Waltzek of GoldSeek Radio interviewed Peter Schiff last week. They discussed the future of the US dollar and the price of gold.

What’s really holding gold back is not just the strong dollar, but the idea that the Fed is going to be raising interest rates. It’s the fear of higher rates that is also hurting the case for gold. When people realize that we’re not going to get higher rates, that we’re going to get QE4, that the dollar is going to tank… Gold is going to go ballistic. I think the next gold rally is going to be the most spectacular rally we’ve ever witnessed…”

Highlights from Peter’s interview:

“This economy is headed to recession fast, and it’s because the Fed got the economy screwed up with all this QE and zero-percent interest rates. Of course, we’re going to get more of the same. I think the odds are zero that we’re going to get a rate hike this year. I think we’re going to get QE4, maybe by the end of the year, but certainly by next year…

“Americans have lousy jobs. Some of them have part-time jobs and they used to have full-time jobs. They’re not getting the wages that they need. Meanwhile, the cost of living is going up. Thanks to Obamacare, healthcare is a lot more expensive. Plus, you’ve got rising food costs; you’ve got rents going up dramatically. Homeownership now is at almost a 30-year low, so lots of Americans have been renting and rents have been skyrocketing. So people have been squeezed from every angle…

“What’s really holding gold back is not just the strong dollar, but the idea that the Fed is going to be raising interest rates. It’s the fear of higher rates that is also hurting the case for gold. When people realize that we’re not going to get higher rates, that we’re going to get QE4, that the dollar is going to tank, and more importantly, when people realize that there is no exit strategy and there never has been. It’s impossible. It’s QE-infinity; it’s zero percent forever. Gold is going to go ballistic. I think the next gold rally is going to be the most spectacular rally we’ve ever witnessed…