If you own dollar denominated assets than you’re a fool. It’s really that simple in the black and white world of American fatalism that is the trademark thesis of Peter Schiff, the CEO of Euro Pacific Capital. “Unfortunately, because we raised the debt ceiling, because we continue to spend money, the cost of government is going to be born by those foolish enough to hold U.S. currency,” Schiff tells Breakout.

In fact, as much as the Wall Street pundits may attack him, Schiff’s long standing affection for gold and other non-U.S. assets has served him well. Accordingly, there’s no strategic shift in sight from the man who’s says economic Armageddon will come because the debt ceiling was raised, not because it (almost) wasn’t.

“You can’t have a portfolio that’s entirely gold and silver, and we don’t,” Schiff says, then lists foreign stocks, non-dollar denominated bonds, commodities and currencies as alternatives. But his go-to favorite, gold, still holds a special place in his heart and has lots more room to rise.

“If you look at the value of U.S. stocks in terms of gold, the Dow peaked in 2000 at about 43 ounces. We’re now at barely 7 ounces of gold for the Dow (7 x $1650 = 11,550). Ultimately, I think we see that ratio come down closer to 1 to 1,” he says. That would require either a lot more Dow decline, a lot more gold gains, or some combination of the two.

Just playing with some numbers here, if gold and the Dow Industrials both had 75% respective gains and losses from their current levels (approx. $1650/11,550), we’d be looking at $2887 to reach a 1-to-1 Gold-to-DJIA ratio. You can run your own scenarios, but the mere thought of that is chilling.

So what do you do? Watch the full “Breakout” video below:

Related ETFs: (NYSE:GLD), (NYSE:SLV), (NYSE:SPY), (NYSE:IAU), (NYSE:MOO)

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