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News Link • Currencies

The Dollar Has Lost 99% of Its Value

• https://www.lewrockwell.com, SchiffGold.com

He critiques popular political solutions like tariffs, sounds the alarm on the ongoing decline of the dollar, and explains why precious metals remain a vital defense for savers. Peter also tackles issues from student debt to the housing market, warning listeners that the current system is fueled by unsustainable government intervention.

Early in the interview, Peter points out that, while politicians like Donald Trump identify symptoms such as trade deficits, their remedies threaten to make the situation worse. He delivers a clear message about the importance of sound money and open trade:

Donald Trump does a good job of pointing out some of the consequences of bad monetary and fiscal policy, like our huge trade deficits. But his prescription is completely wrong. He says, well, you know, what we need is tariffs and rate cuts, and we actually need the opposite of that. We don't need any tariffs; we need free trade. But we need rate hikes. The reason that our trade deficits are so big is because our interest rates have been so low and they've encouraged excess consumption.

Turning to the global stage, Peter warns that the world is already moving away from the dollar. He paints a stark picture of what happens when America's privileged position evaporates and foreign savings dry up:

And I think the de-dollarization process has begun. And when it concludes, America's ride on the global gravy train is going to be over. … We're not going to have a lot of stuff to buy. We're just going to have a lot of money to spend. And so prices are going to go through the roof. Interest rates are going to go through the roof because nobody is going to have access anymore to the foreign savings. That's why our rates are low. It's because we're able to tap into the Chinese savings.

Peter doesn't let up on domestic policy failures. He singles out the student loan crisis as another example of well-intended but economically flawed government intervention. Young people, he argues, are pushed into a cycle of debt fueled by artificial demand:

Look, people go to college, they're 17, 18 years old. They're kids, right? And they're basically told by everybody that you need a college degree or you're a complete failure. You're never going to make it in this world if you don't have a college degree. … So these kids are under a lot of pressure to go to college and they're under a lot of pressure to borrow the money because they can't afford the high prices unless they borrow the money.


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