Rags to Riches

[alfaspider]

Schiff explained his reasoning for gold’s lackluster performance in the past three years,

saying it was driven by the ‘false belief’ ‘that the U.S. Fed had engineered a ‘legitimate economic recovery of the United States’ and that higher interest rates would be supportive of the dollar and detrimental to the price of gold. ‘All this is wrong,’ he said, adding that, ‘all the Fed did was inflate a gigantic bubble which may have already popped.’ Schiff added that he foresees rate cuts, not rate hikes, and a fourth round of quantitative easing is not out of the question. ‘I think it is an inevitability that we are going to see and I do think it is likely that it will start in 2016. [I]f we have a negative fourth quarter, there is a good chance we will probably will have a negative first quarter, which puts the U.S. officially back in recession. And what will Fed do in an election year? They will pull out all the monetary stops.’