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January 18, 2015
Peter Schiff: China To "Cut And Run" From Dollar - "Get Your Economic House In Order"
By Susan Duclos
In the video below Peter Schiff breaks down the bomb Switzerland dropped into the Forex market, explaining the ramifications to those that were shortchanging the Swiss Franc and informing viewers that what we are watching is about to happen on a much larger scale when China faces the same decision and is forced to "cut and run" from the US Dollar.
Schiff's assertions on the "Swiss" event are evidenced by recent news that "casualties from the Swiss shock" are being seen from New York to New Zealand, as reported by Bloomberg:
Losses mounted from the Swiss currency shock as the largest U.S. retail foreign-exchange brokerage said client debts threatened its compliance with capital rules and a New Zealand-based dealer went out of business.
FXCM Inc., which handled a record $1.4 trillion of trades by individuals last quarter, said clients owe $225 million on their accounts after the Swiss National Bank’s decision to abandon the franc’s cap against the euro roiled markets worldwide. Global Brokers NZ Ltd. said losses from the franc’s surge are forcing it to shut down. IG Group Holdings Plc estimated an impact of as much as 30 million British pounds ($45.5 million) and Swissquote Group Holdings SA set aside 25 million francs ($28.4 million).
Schiff and others predicted this Swiss event, and he is making another prediction using this as an example of what we are going to see as the illusion of "recovery" fails in the US and the Fed decides to proceed with yet another round of Quantitative Easing (QE), where China will be in the same position as the Swiss were, but to the nth degree, and will do the very same thing Switzerland just did, but the casualty then will be the greenback.
When the Chinese decide to abandon their peg, both in the Hong Kong Dollar and the Yuan, that is going to be a 10.0 on the Richter scale of economic activity. And this time it’s going to be the dollar that is going to take it on the chin.
This is one of the best explanations given on what is happening in global economics and what is coming for the US Dollar, laid out in a manner that is easily understood for those that are not financial gurus.
