Schiff on Metals and Miners: Dollar Bubble will Humble the Economy

Peter recently joined Metals and Miners host Gary Bohm to discuss a range of economic topics, from consumer debt to the fragility of the U.S. dollar and the shifting global reserve landscape. He explains how reckless borrowing—by both consumers and governments—ties into the bigger story of unsustainable dollar dominance and its consequences for economic security, inflation, and the gold market. 

Peter opens with a candid take on the psychology of U.S. consumers facing mounting financial strain. He notes that for many deeply in debt, there’s little incentive to curb borrowing when bankruptcy feels inevitable:

And I think that the people who are trying to borrow more money out of desperation, they probably don’t even care that they can’t pay the money back. They just want to borrow more. And in fact, once you’ve already borrowed more than you can possibly repay, and you know it’s just a matter of time before you file for bankruptcy, you may as well go out with a real bang. I mean, so you might as well just take out as much additional credit. So the consumer has no qualms about refinancing a house that is going to go into foreclosure anyway, or maxing out a credit card that he has no intention of paying, or signing up for buy now, pay later, when in his mind it’s ‘buy now, pay never.’