Peter Schiff Warns Of The Looming Dollar Collapse
Peter Schiff, president of Euro Pacific Capital and author of How an Economy Grows and Why it Crashes, argues that the credit problems that plagued Greece will happen here and the U.S. dollar index will sink. Shiff is of the opinion that the economy is in worse shape than it was in 2008. Shiff says that the real crisis we are facing will be a currency crisis, a funding crisis, a sovereign debt crisis. This crisis is being masked right now by phony accounting practices and the fact that the Dow lost over 50% lending itself to a short covering bounce. Schiff equates the dollar to the dot com bubble and the housing bubble, saying that the fundamentals are flawed, and will lead to a collapse. His fear is that the longer it takes to fall, the further the drop. See the following video for a more detailed explanation of his fears.
There are many who are bulking up on their gold holdings to hedge against the dollar risk, placing their money in funds like the SPDR Gold Trust (GLD). There are other options available, however. Powershares offers the “PowerShares DB US Dollar Index Bearish ETF” (UDN) which tracks the Deutsche Bank Short US Dollar Futures index. Foreign Currency ETFs are a good bet through funds such as the CurrencyShares Euro Trust (FXE), CurrencyShares Swiss Franc Trust (FXF), CurrencyShares Canadian Dollar Trust (FXC), CurrencyShares British Pound Sterling Tr (FXB) and the CurrencyShares Australian Dollar Trust (FXA) to name a few. If commodities are your preferred hedge, there is a myriad of options available.
Broad commodity indexes: GreenHaven Continuous Commodity Index (GCC), iShares S&P GSCI Commodity-Indexed Trust (GSG), PowerShares DB Commodity Index Tracking (DBC), UBS E-TRACS CMCI TR ETN (UCI), GS Connect S&P GSCI Enh Commodity TR ETN (GSC), iPath DJ-UBS Commodity Index TR ETN (DJP), iPath S&P GSCI Total Return Index ETN (GSP), Ultra DJ-UBS Commodity ProShares (UCD), PowerShares DB Commodity Dble Long ETN (DYY).
Agricultural commodities: iPath DJ-UBS Cocoa TR Sub-Idx ETN (NIB), iPath DJ-UBS Coffee TR Sub-Idx ETN (JO), iPath DJ-UBS Cotton TR Sub-Idx ETN (BAL),iPath DJ-UBS Sugar TR Sub-Idx ETN (SGG), UBS E-TRACS CMCI Livestock TR ETN (UBC), iPath DJ-UBS Livestock TR Sub-Idx ETN (COW), iPath DJ-UBS Grains TR Sub-Idx ETN (JJG), ELEMENTS MLCX Grains Index TR ETN (GRU), iPath DJ-UBS Softs TR Sub-Idx ETN (JJS), ELEMENTS MLCX Biofuels Index TR ETN (FUE), UBS E-TRACS CMCI Food TR ETN (FUD), PowerShares DB Agriculture (DBA), UBS E-TRACS CMCI Agriculture TR ETN (UAG), iPath DJ-UBS Agriculture TR Sub-Idx ETN (JJA), ELEMENTS Rogers Intl Commodity Agri ETN (RJA), Claymore/Beacon Global Timber Index (CUT), and Market Vectors Agribusiness ETF (MOO).
Industrial commodities: iPath DJ-UBS Aluminum TR Sub-Idx ETN (JJU), iPath DJ-UBS Copper TR Sub-Idx ETN (JJC), iPath DJ-UBS Lead TR Sub-Idx ETN (LD), iPath DJ-UBS Nickel TR Sub-Idx ETN (JJN), iPath DJ-UBS Tin TR Sub-Idx ETN (JJT), PowerShares DB Base Metals (DBB), UBS E-TRACS CMCI Industrial Mtls TR ETN (UBM), iPath DJ-UBS Ind Metals TR Sub-Idx ETN (JJM)ELEMENTS Rogers Intl Commodity Metal ETN (RJZ), PowerShares Global Coal (PKOL), Market Vectors Coal ETF (KOL), Market Vectors Steel ETF (SLX), and Market Vectors RVE Hard Assets Prod ETF (HAP).
Energy: United States Oil (USO), United States 12 Month Oil (USL), iPath S&P GSCI Crude Oil Ttl Ret Idx ETN (OIL), PowerShares DB Oil (DBO), PowerShares DB Crude Oil Long ETN (OLO), Ultra DJ-UBS Crude Oil ProShares (UCO), United States Heating Oil (UHN), United States Gasoline (UGA), United States 12 Month Natural Gas (UNL), United States Natural Gas (UNG), iPath DJ-UBS Natural Gas TR Sub-Idx ETN (GAZ), PowerShares DB Energy (DBE), UBS E-TRACS CMCI Energy TR ETN (UBN), ELEMENTS Rogers Intl Commodity Engy ETN (RJN), and iPath DJ-UBS Energy TR Sub-Idx ETN (JJE).
Precious metals: PowerShares DB Precious Metals (DBP), PowerShares Global Gold S&P Prec Metals (PSAU), SPDR Gold Shares (GLD), iShares COMEX Gold Trust (IAU), ETFS Physical Swiss Gold Shares (SGOL), PowerShares DB Gold (DGL), UBS E-TRACS CMCI Gold TR ETN (UBG), PowerShares DB Gold Double Long ETN (DGP), Ultra Gold ProShares (UGL), iShares Silver Trust (SLV), ETFS Physical Silver Shares (SIVR), PowerShares DB Silver (DBS), Ultra Silver ProShares (AGQ), ETFS Physical Platinum Shares (PPLT), UBS E-TRACS Long Platinum TR ETN (PTM), iPath DJ-UBS Platinum TR Sub-Idx ETN (PGM), ETFS Physical Palladium Shares (PALL), Market Vectors Gold Miners ETF (GDX) and Market Vectors Junior Gold Miners ETF (GDXJ)