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The Federal Reserve will ultimately return to quantitative easing, which will send stocks reeling and gold soaring, asserts Peter Schiff, CEO of Euro Pacific Capital.
Now that the Fed has finished its third round of quantitative easing, it should leave well enough alone, he says. "The recession the Fed is fighting is the cure" for excesses in the financial system, Schiff told MarketWatch.
But he thinks that the Fed will implement QE4 at the first hint of weakness in the stock market or economy. And once investors realize stocks are overvalued, the dollar will plummet and gold will fly higher, he says.
"Gold prices will go ballistic, once people realize that the dollar is overvalued," Schiff said. He predicts the dollar will plunge 90 percent.
Earlier this month, the dollar reached a seven-year high against the yen and a two-year high against the euro.
As for gold, it hit a four-year low of $1,130.40 an ounce Nov. 7. December gold futures settled at $1,190 on the Comex Thursday.
Read Latest Breaking News from Newsmax.com http://www.Newsmax.com/Finance/Schiff-Fed-stocks-gold/2014/11/20/id/608723/#ixzz3Ji13ZLBL
Urgent: Should Obamacare Be Repealed? Vote Here Now!
Now that the Fed has finished its third round of quantitative easing, it should leave well enough alone, he says. "The recession the Fed is fighting is the cure" for excesses in the financial system, Schiff told MarketWatch.
But he thinks that the Fed will implement QE4 at the first hint of weakness in the stock market or economy. And once investors realize stocks are overvalued, the dollar will plummet and gold will fly higher, he says.
"Gold prices will go ballistic, once people realize that the dollar is overvalued," Schiff said. He predicts the dollar will plunge 90 percent.
Earlier this month, the dollar reached a seven-year high against the yen and a two-year high against the euro.
As for gold, it hit a four-year low of $1,130.40 an ounce Nov. 7. December gold futures settled at $1,190 on the Comex Thursday.
Read Latest Breaking News from Newsmax.com http://www.Newsmax.com/Finance/Schiff-Fed-stocks-gold/2014/11/20/id/608723/#ixzz3Ji13ZLBL
Urgent: Should Obamacare Be Repealed? Vote Here Now!
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