During a recent interview between Peter Schiff (CEO of Euro Pacific Precious Metals) and Greg Hunter (USAWatchdog.com), Schiff says the latest round of ‘QE3’ by the Fed has only postponed the coming collapse. The longer we wait the worse it’s going to be because we simply compound the mistakes that make the crash necessary.
The stage has been set for a currency crisis and a sovereign debt crisis, and they’re going to come, and they’re going to come relatively soon, and it’s going to be horrific.
Not only are people going to continue to lose their jobs with this policy, even the Americans who manage to maintain their jobs, they’re not going to maintain their living standard because their paychecks are not going to keep pace with the escalating cost of living, thanks to the Fed.
When the Fed finally has to choose between runaway inflation and a collapse because they have to raise interest rates to stop runaway inflation or hyperinflation… we’re going to get to that tipping point at some time. The Fed will be ‘damned if it does’ or ‘damned if it doesn’t’, and no matter what it chooses it’s going to bring on a crisis. Except if it chooses inflation, it brings on an even bigger crisis. It might postpone it for a few months… but that’s it – we’re going to have this crisis one way or another. Just prepare for it.
It could happen in two months, although more likely it won’t happen that soon, Schiff says, it will happen during the term of the next president. The next year or two is a high probability of some kind of crisis. Just pretend like it’s tomorrow and make sure you have your ducks in a row.
From a survival preparedness standpoint, what can one do to prepare for this? While not knowing the magnitude of a dollar collapse, or runaway inflation, both will affect you badly. If inflation is in our future, consumable goods and tangible assets purchased today will be ‘cheaper’ than later on (assuming that your paycheck will not increase to keep up with inflation – which undoubtedly it will not, and is not). An all out collapse or runaway hyperinflation will be devastating, should it occur. Some advice may be to prepare to be able to live with what you have, or less, and perhaps to get what you need, now. Shore up your food reserves, and go from there. Realize and KNOW that things will not be the same in any way shape or form. Be ready to adapt. Get a head start from others who have no clue this is coming. Become more self-sufficient. Start learning new and practical skills. Don’t buy frivolous things… instead, buy practical and useful. Things that will help you live your life. If you have ‘extra’, then diversify out of the dollar, perhaps into some precious metals, along with your other diversification.