Peter Schiff Interviews Currency Wars Author James Rickards

HIGHLIGHTS:

Both gentlemen agree that world is witnessing a "currency war" - competitive devaluation of currencies to steal export share.
Schiff argues that the only way to win the game is not to play. Rickards says the euro is likely to come out strongest.
Rickards draws attention to the International Economic Emergency Powers Act, a current US law that would give the US president authoritarian control of the economy in case of an extreme collapse. Schiff thinks such a disorderly collapse is on the horizon.
Schiff thinks the US is unlikely to return to a gold standard in the near future, while Rickards thinks it is too effective a solution to be overlooked - even by Keynesians. Both are bullish on gold as an investment.
Rickards was tapped to teach the Dept. of Defense how to wage war using monetary policy, but doesn't think current US policies are meant to deliberately undermine foreign governments.
Both gentlemen agree that the best solution continues to be allowing the economy to rapidly de-leverage without government intervention - and cite the forgotten 1920-21 Depression as supporting evidence.
Schiff and Rickards disagree on which country holds the upper hand in the Chimerica relationship. Rickards thinks the US can simply freeze China's accounts, while Schiff thinks China's will still be left with a greater productive capacity.

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