Peter Schiff interview on KWN

When asked about year over year increases in inflation in the UK with butter being up 57%, bread 50%, potatoes 103%, tomatoes 63%, cauliflower 82.6% Schiff remarked, “Inflation is the money that the Fed is printing that is causing all of these prices to rise. The Fed has been printing money like crazy. The Federal Reserve has been printing enough money to buy all of the net new issuance of US government debt...Central banks around the world are also printing money to prevent their currencies from rising against the debased dollar.

So the world is in a money printing fest and the result is that prices are rising, mostly for commodity prices. The Fed is going to be announcing today what it’s going to do with interest rates once the official policy of QE2 or dollar debasement comes to an end. Will they replace it with a QE3? I think the Fed will try to deny that, but I believe that they will do it because without the continuous printing of money, interest rates will rise sharply and this phony bubble economy that’s built on a foundation of cheap credit will come tumbling down.

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