Peter Schiff spoke with CNBC World last night. Just like Futures Now and Yahoo! Finance, the anchor questioned whether or not the Fed is really to blame for market volatility. He thought commodity volatility – particularly oil – played a big role. Peter disabused him of this theory and explained why he expects the Fed to launch QE4 in 2016.
Why are commodities falling in price? It’s because of the Fed… Everybody believes that the Fed is going to be raising interest rates. That is strengthening the dollar, and it is the strength of the dollar that is undermining commodities, because commodities are priced in dollars. If the dollar goes up, commodities become more expensive for everybody who has to pay in a currency other than the dollar. This is the source of all this instability and volatility.”
Video Length: 00:03:51
Highlights from the interview:
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