 How much of the U.S. dollar values dependent on foreign lending from lending or foreign borrowing? Peter Schiff's is convinced that other countries will stop accepting U.S. IOUs and will cause it to be worthless. Also U.S. Dollar index is going down while gold is going up. Yeah, I mean if foreign countries stop using dollars If stop, foreign countries stop buying U.S. debt Then the dollar will collapse But you have to ask yourself What would they use? What are they going to use if they don't use the dollar? Right now if they were rational They could go on a gold standard. That is impossible to imagine The China or the European Union would abandon the dollar and go on a gold standard Because the gold standard is too limiting to statists. The whole point of a gold standard The whole point of going off a gold standard is to give status more power and more control So with the world investors start using one the the Chinese currency really I think the Chinese Economic system is built on an even bigger house of cards in the American economic system The Chinese government has control of its own currency even more than the U.S. government has control of its own currency The the the the Chinese have borrowed huge amounts of money. Can they ever repay it back without inflating their currency? Oh Well, they all shift to the euro really you trust the European Central Bank more than the Fed So the problem is that in a world of fiat currencies and in a world unwilling to go to a real money like gold What are they gonna go to is the US dollar good money? No, is it as good or better than the euro and the yuan? Yes, probably better now at some point it might not be and At some point it could collapse relative to Euro and to you on I just don't see it because I see Europe and China as even more decrepit and even more at risk economically than the US dollar than the US economy is That could change of course. Europe could become sane China could move towards capitalism, but it's unlikely anytime soon So I'm not worried about the dollar collapsing relative to other currencies anytime soon now it is possible if we get inflation That is if the government if Trump gets another trillion dollar stimulus package I think trillion or two trillion or whatever they're talking about these days and the Fed continues printing money like crazy Then we will get inflation at some point. I know it's six trillion But you know people talking about inflation after the after the financial crisis and it didn't happen So I'm a little wary But because of other mechanisms that suppress inflation at the surprise inflation at the same time as all this printing is going on It's all those are disappearing onto the for example reserve balances at the Federal Reserve So it's not actually going out into the economy and creating the kind of activity that would create inflation But if we actually got significant inflation in the US Then yeah, the dollar would be drop in value unless and this is how markets are self-correcting What would encourage foreigners to buy dollars even if you had inflation? Not dollars what would encourage foreigners to buy dollar denominated debt? Even if you had inflation Well, what encouraged them is if interest rates were very high So for that to actually happen For that to actually happen The Fed would have to allow interest rates to rise particularly long-term interest rates to rise So again, whether the dollar collapses completely is depends on what the Fed does The extent to which interest rates are allowed to move The extent to which we are Inflating our currency to the to a point where prices start going up significantly and to the extent that other countries are not doing that That is to the extent that to what extent is Europe and China engaged in more rational economic policy I see no sign That China and Europe engaged in economic policy that is better more rational than America is then the US is right now We will see maybe I'm wrong But but that's why I don't see the collapse of the dollars imminent now gold is going up because the risk of inflation has gone up So if you want a in inflation hedge if you want a hedge against the possibility of future inflation price inflation Then you buy gold so the gold is a consequence of the fact that Gold going up as a consequence of the fact that the risk not the actual inflation, but the risk of inflation of a price inflation has gone up Somebody says there's 30 trillion dollars of debt There's much more than 30 trillion dollars because what we're not Counting is all the obligations that the federal government has made that are not literally Denominated in bonds and if you count those which which includes so security and Medicare Then the actual US debt is closed is as well above a hundred trillion dollars But those obligations also exist in Europe and in and to some extent in China What we need today what I called a new intellectual would be any man or woman who is willing to think Meaning any man or woman who knows that man's life must be guided by reason by the intellect Not by feelings wishes women's or mystic revelations Any man or woman who values his life and who does not get want to give in to today's of the spare cynicism and impotence and does not intend to give up the world to the dark ages and to the role of the collectivist All right before we go on Reminder please like the show we've got a hundred and sixty-three live listeners right now 30 likes That should be at least a hundred. 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