Peter Schiff on USD bubble and on damage rates hike will cause - Video

President of Euro Pacific Capital Peter Schiff is giving an interview to Reason.tv, where he touches a disturbing question of zero interest rates and a possibility of a future financial crisis.

The United States has had zero interest rates for seven years. Doesn't it automatically create a bubble? Peter Schiff considers it has created an enormous bubble, and the fact that the Fed has not raised rates earlier - is because they admit the bubble does exist. If you remember how much damage Alan Greenspan (Fed president before Ben Bernanke and Janet Yellen) did by keeping rates at 1% for 1,5 year, you will recognize that this was what inflated the housing bubble and then led to the financial crisis, the analyst says.

If today's bubble bursts, the consequences will be much more serious, Schiff says.

So where are the bubbles allocated? The analyst says they are pretty everywhere in the financial assets: in the stock market, in the bond market, and even in the U.S. dollar, which will likely to be the first one to pop.

So, the Fed had better launch another quantitative easing, instead of raising rates...