Renowned economist Peter Schiff has advised China to tackle its trade deficit with America by selling extensively, dumping the dollar and U.S. government bonds, and purchasing gold to support the Chinese yuan. According to Schiff, this action will lead to a decline in the value of the dollar against the yuan and a significant increase in interest rates in America. Schiff stated that this solution would benefit Chinese consumers as they would gain purchasing power for American products. He emphasized that Chinese consumers would immediately become wealthy as purchasing power shifts from America to China. Chinese citizens can consume all the products they export to America and will also be able to buy many American products, such as second-hand cars, that Americans can no longer afford to keep. Schiff believes that if China follows his advice, Americans will face severe inflation and a decline in welfare standards.
