Peter Schiff: Fed is trapped; will either bankrupt the government or the American people

The Federal Reserve has trapped themselves; either they raise interest rates and bankrupt the Treasury, or they don't raise rates, let inflation spiral out of control, and bankrupt the American people, said Peter Schiff, chief market strategist at Euro Pacific Asset Management. "How does [the Fed] fight that inflation without bankrupting the U.S. government? The answer is it can't. My thinking is, if it can't fight inflation without bankrupting the U.S. government, it won't fight the inflation, which means it bankrupts the public because it destroys the value of the dollar," Schiff said.

0:00?EUR< - Next financial crisis?13:20?EUR< - End of the U.S. dollar?21:00?EUR< - Emerging markets28:30?EUR< - Gold price and monetary policy35:10?EUR< - Commodity price outlook

Part 1 (part 2 below)

Peter Schiff has been a vocal opponent of Bitcoin, but in an interview with Kitco News on Wednesday, he said there is a form of cryptocurrency that he could potentially support.

The chief market strategist of Euro Pacific Asset Management told Kitco News that a "legitimate" cryptocurrency is a gold-backed token that could replace fiat currencies in utility.

0:00?EUR< - Why is Peter Schiff's son invested in Bitcoin?4:46?EUR< - People who have changed their minds on Bitcoin9:00?EUR< - Gold vs. Bitcoin11:14?EUR< - "The only cryptocurrencies that would make sense"

Part 2

Peter Schiff is an internationally recognized economist specializing in the foreign equity, currency and gold markets. Mr. made his name as President and Chief Global Strategist of Euro Pacific Capital. He frequently delivers lectures at major economic and investment conferences, and is quoted often in the print media, including the Wall Street Journal, New York Times, Barron's, BusinessWeek, Time and Fortune. His broadcast credits include regular guest appearances on CNBC, Fox Business, CNN, MSNBC, and Fox News Channel, as well as hosting his own weekly radio show, Wall Street Unspun. He's also the author of the bestselling books: Crash Proof 2.0, The Little Book of Bull Moves in Bear Markets:, and The Real Crash: America's Coming Bankruptcy - How to Save Yourself and Your Country.