The investment adviser who accurately predicted the crash of is once again sounding the alarm. This time around, Peter Schiff, the chief executive officer of Euro Pacific Capital who memorably predicted the collapse of the housing market in and the global financial crisis ofis speaking out against the Federal Reserve, which, he claims, has inflated the prices of stocks and bonds with its ultraloose, unconventional monetary policies.

Schiff espouses the view that a good, old-fashioned recession may be exactly the catharsis the markets require, in the wake of a fleet of quantitative-easing measures that have merely buoyed stock values temporarily. Contrary to his theory, the dollar has strengthened against other currencies as the rest of the world — most notably Europe — has seen faltering growth.

Schiff has been one of the most vocal bears and Fed critics. Here he is at the Vancouver Resource Investment Conference last year:. And, as the old saying goes, even a broken watch is right twice a day. Guys like Jeremy Grantham, co-founder and chief investment strategist of Grantham Mayo van Otterloo, said in a quarterly newsletter released on Monday that the stock market is headed in the right direction for a crash. They also warned that stock prices — inflated by the liquidity — would fall dramatically once the program ended.

But besides a brief October scare, U. A super-low-interest-rate environment has forced investors into a stock-hungry frenzy.

Where else are investors going to go for yield? Bulls argue that there have been clear signals the U. Confidence in the U. Schiff points to gold as his safe harbor investment. His theory is that the dollar will plunge, and gold will skyrocket, once the market realizes stocks are overheated.

What is difficult to imagine is the depreciation of the dollar, or a jump in inflation on the scale Schiff envisions.

Man who called the last stock crash is blaming the Fed for the next | New York Post

Schiff believes that the dollar will tank because of ruger mini 14 wood stock much Fed intervention. He predicts it will begin QE4 at the first sign of serious weakness in the stock market or the economy, which would lead to a loss of confidence in the Fed and, by association, the greenback.

Harris thinks this relationship is a classic case of spurious correlation: He further comments that QE is far from over, as the Fed is not going to shrink its balance sheet for a very long time.

Asked about the risks of inflation, Harris dismissed it. Until banks start lending their reserves, those funds are not going to enter the economy.

And even when they start lending, there is no automatic link and the process is gradual. Investors are still voting with their wallets, however. The sanrio stock market ratio indicates that investors are confident about the U. History lacks precedence for what happens when the Fed keeps rates at near zero for so long and holds trillions of dollars on its new york times stock market crash sheet.

So some serious rockiness is a given.

However, Schiff paints an apocalyptic picture. While stock markets can and will at some point correct, and maybe even crash, hyperinflation in the U.

The dollar rises or falls against another currency. For that to happen, another economy would have to step up and serve as the reserve currency of the world, as the U.

They rallied as the rest of global economy buckled. The dollar continues to reach new multiyear highs against its major rivals, and most analysts expect it to strengthen through Banking industry makes employees more dishonest: All Rights Reserved Terms of Use Privacy Your Ad Choices. We've sent an email with instructions to create a new password. Your existing password has not been changed. News Metro Page Six Sports Business Opinion Entertainment Fashion Living Media Tech Real Estate Sub Menu 1 Video Photos Covers Columnists Horoscopes Sub Menu 2 Email Newsletters Home Delivery.

Uber wants Sheryl Sandberg to be its next CEO. Sheryl Sandberg says she's still grieving her late husband. SL Green eyes new downtown office tower near WTC. Jack Ma plays nice in Detroit as regulators look over acquisition.

Second suitor emerges as potential buyer of Chicago Sun-Times. Grocery stores looking into delivery business after Amazon deal. A Wall Street analysis sent these cable giants' stocks tumbling. Bond trading in the latest quarter was even worse than feared. Apple and the iPhone are 'sex,' professor says. Uber adds tipping amid push to ease tensions with drivers.

Facebook Twitter Google Facebook Messenger WhatsApp Email Copy. View author archive Get author RSS feed. Modal Trigger Peter Schiff AP. Here he is at the Vancouver Resource Investment Conference last year: Read Next Banking industry makes employees more dishonest: Trending Now in Business.

Courteney Cox regrets all the stuff she did to her face. New York Post Facebook Twitter Instagram LinkedIn Messenger Email Email Newsletters Mobile Apps Contact Us Tips.

News Corp HarperCollins Marketwatch realtor. Send to Email Address Your Name Your Email Address document. Post was not sent - check your email addresses! Sorry, your blog cannot share posts by email. With your existing account from Use an account with your email address Or with a NYPost.

The New York Times - Breaking News, World News & Multimedia

Use an account with your email address. Or use another account. Create a new password Forgot Password? Create a new password Sent!