“America is going to win the currency war,” Schiff said Tuesday on CNBC’s “Futures Now.” “I think we’re going to win, but right now you have a dollar bubble.”
The dollar bubble claims fly in the face of how the U.S. common currency has performed this year. The dollar index is up more than 7 percent year to date.
But according to the Euro Pacific Capital CEO, the Federal Reserve will hold off on raising rates as long as possible, and over time, that will cause the dollar to collapse.
While the Fed has discussed plans to raise interest rates this year as early as September, Schiff believes that the Fed will instead implement another round of quantitative easing.
“They are going to do QE4, they’re going to do QE5, they’re going to do QE’s indefinitely until a currency crisis ends the party and they can’t do it anymore. And that crisis is going to come,” Schiff said. “That is what the drug addicts on Wall Street want. They want another fix, and I think the pushers are going to provide it, unfortunately.”