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Peter Schiff: ECB Should Not Print More Money

“The ECB should do nothing, that’s exactly what the Fed should have done.” said Peter Schiff, the CEO of Euro Pacific Capital, in an interview on CNBC before the ECB is going to meet tomorrow to discuss the solution to European Debt Crisis.

Schiff believes the only way to solve the problem is when the central bank holds still, and forces the European nations to cut their spending. Also it will be better to let the weak members out rather than trying to preserve the whole system, otherwise ECB will have to use all forms of monetary stability to “create this never ending stream of moral hazards and inflation.” Schiff believes if Italy can make substantive cuts to assure the market, it won’t go after Greece. But if the ECB provide an easy to help European countries out, nobody will stop spending and let their taxpayers off the hook. “Just like the Fed, the fed has given the American politicians an easy way out and so we make no progress whatsoever.” said Schiff, “we pile more debt on, and this whole thing is going to blow up.”

Schiff does not think the European debt is a bubble and he will continue to long gold. (See the CNBC interview)