Economist Peter Schiff has cautioned that recent optimism surrounding a revived US-China trade agreement is masking deeper economic risks, potentially pushing Bitcoin to new highs. Despite market enthusiasm over the potential trade deal’s impact on global markets, Schiff argues that underlying structural issues are undermining the dollar’s dominance and favor alternative assets like gold and Bitcoin. [Source: TurkishNY Radio]
Schiff emphasizes several key factors:
* **Deepening Deficits:** The US faces a widening budget deficit, further eroding trust in the dollar’s stability.
* **Persisting Inflation:** High inflation coupled with negative real interest rates pose significant economic challenges.
* **De-Dollarization:** Global actors are increasingly replacing the US dollar for trade and reserves, leading to de-dollarization trends.