Dollar debt bubble is bursting
On the larger scale, plummeting oil prices are “part of the deflationary process” affecting the whole US dollar bubble, Schiff believes. Enormous amounts
of debt have piled up across every sector of the US economy.
“The real problem in the US economy is all the debt. We have so much debt, not just in oil companies but in all sorts of companies and everybody is missing this,” Schiff said.
Unlike during the 2008 financial crisis, the US is unlikely to be able to re-inflate the dollar, as it simply doesn’t “have enough bullets in their gun to reflate a larger bubble” and now is bound to “deal with a full aftermath of this coming crisis.”
“In 2008 the dollar went up because everybody was buying it. This time, the
dollar is going to tank, because everybody is selling it,” Schiff told RT. “And this commodity bear market, including what’s happening in oil, is going to be very short-lived. Because once the dollar starts to collapse, all these prices are going to rise including the price of oil.”