The economy seems to be going well. The GDP number was 3.9% and oil hit a four year low of $74 a barrel. However, Peter Schiff, CEO of Euro Pacific Capital thinks all of this will change. He foresees a dismal picture, according to NewsMax, “The U.S. economy is headed toward a recession, which means we are going to get more quantitative easing, not a rate hike, the dollar is going to turn around and oil prices are headed back higher.”
The dollar has been soaring and is at a 7 year high against the yen, a 2 year high compared to the euro. However, a high dollar is not good for companies that do business overseas. The Federal Reserve will do another round of quantitative easing. There are projections that it will raise interest rates in 2015. Meanwhile, Schiff thinks that weak oil is a sign of slowing global demand due to sluggish economies. European governments are seeing sluggish growth, and Japan’s was negative. While cheap oil is good for the consumer who has to fill up the tank, it could spell disaster for domestic oil producers.