Chinese Economic Problems Are Made In America
Peter Schiff spoke with Reason TV about the dramatic plunge in the Chinese stock market over the past three weeks. Peter explains how China mimics America’s money-printing economic policy to suppress the strength of the yuan. The effect is similar in both countries – currency inflation, which artificially stimulates investment in stocks. Despite the correction in Chinese markets, Peter believes China’s economy is still fundamentally stronger than that of the United States. Someday, he argues, China will drop its currency peg to the dollar and may begin backing the yuan with gold.