Monday, December 29, 2008

Peter Schiff

Peter Schiff predicted the collapse of the housing bubble when most economists thought the new world had come. He is now concerned about the impact of the government pumping the supply of money.

For now the inflationary tide is being held back by the countervailing pressures of bursting asset bubbles in real estate and stocks, forced liquidations in commodities, and troubled retailers slashing prices to unload excess inventory. But when the dust settles, trillions of new dollars will remain, chasing a diminished supply of goods. We will be left with 1970s-style stagflation, only with a much sharper contraction and significantly higher inflation.

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