Do not buy dollars because they are going to fall, Peter Schiff’s warning to investors

The situation of the US dollar is a matter of concern for economist Peter Schiff, known for being one of the main skeptics and critics of bitcoin (BTC), who through his account on X warned his followers about the financial future of the US. USA

In a series of messages published in recent days, the economist advises investors “not to buy dollars,” questioning the economic policy established by the Federal Reserve (Fed).

For Schiff, the loss of value of the currency is certain due to “the inability of the government.” Therefore, she recommends not getting carried away by the “optimism” shown by the Fed, while the country’s economy “is weakening at the same time that inflation is strengthening.”

So think that far from going down to the desired level of 2% that the government aspires to, the inflation rate will rise to more than 5% in the coming months.

His prediction is based on what is known as the “US debt crisis,” named after debt reached a historic $34 trillion this year. The figure makes the country the largest debtor in the international market.

Such a level of debt generates an unproductive economy that for Schiff is evidenced by some recent data, including the 7.7% growth in the deficit in the commercial exchange of goods and services. A percentage that not only causes the US to lose rank in international trade, but also makes “the dollar fall and prices rise”.

Until now, the dollar’s strength relative to other fiat currencies has shielded American consumers from feeling the full impact of inflation. But once the dollar crashes, that protection will be lost and inflation will hit consumers’ purchasing power much harder.

Peter Schiff.

It is not the first warning that Schiff has made about the risks experienced by the dollar, since for months he has been pointing out that the currency is in danger of losing its international dominance.

That is why it supports the forecasts of many analysts regarding a gradual de-dollarization of the world economya phenomenon that – although moving at a slow pace – is likely in the future as more countries stop using the North American currency.

It’s a bleak outlook for which “most investors are not prepared,” as Schiff sees it.

Therefore, the expert’s suggestion is to buy and hold gold, his preferred asset. This, despite the comments of many followers on social networks who remind him that The asset that has appreciated the best in recent times is bitcoin.

“Buy bitcoin,” says one of the X commentators in response to Schiff’s analysis, a message he ignores by insisting in other posts that the price of the digital currency is “artificial.” An opinion that he has held for a long time even though he has benefited from the bull run of BTC by buying and selling Ordinals, the collection of NFTs on the Bitcoin network.

However, data indicates that Americans Yes, they are taking into account the digital currency created by Satoshi Nakamoto. It is shown by surveys and exposed by investors like Mike Novogratz and Jack Mallers, who observe how the US economic crisis leads more people to approach bitcoin.