Peter Schiff mentioned that the only weapon the Fed has to fight the economic crisis is pure undiluted inflation. Peter Schiff said “This week the Federal Reserve finally made clear what should have been obvious for some time – the only weapon that the Fed is willing to use to fight the economic downturn is a continuing torrent of pure, undiluted, inflation.”
Peter Schiff fears a coming perioid of inflation. He said that if the Chinese and Japanese no longer buy U.S. bonds then we will have to print the money the foreigners won’t lend us.
One way to play around an inflation is to short long term government bonds. This is possible by buying an EFT like TBT or short the CBOT 30 year Treasuries Futures.
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