US dollar will crash & burn because of trade war with China – investor Peter Schiff

He explains that the excessive amount of dollars will be provided by the mint of US treasury bonds. "You've got a treasury, you've got a dollar. I mean, what's the difference between a 30-day treasury bill and a dollar? You know, they're pretty much the same thing. The only difference is people don't readily spend their treasuries, right? They don't go into a store and purchase something with a treasury. But they can. They can cash it in and buy something. But they're effectively dollars. So, even though the Federal Reserve, in theory, will be shrinking its balance sheet, the US government will be expanding its balance sheet."

Schiff says as the supply of dollars is going to grow and grow, the demand for the American currency can fall, while the US Fed will be unable to stop the dollar glut. “Eventually, what's going to happen is it's going to be the demand for those dollars is going to collapse, not the supply. And when the demand for dollars collapses, then the price of the dollar collapses. You get massive inflation. That is what is coming."

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