Peter Schiff was on Fox Business News with anchor Lori Rothman, who covers mid-day market moves. In this interview he talks about the consequences of the debt situation we find ourselves in. Not a fan of Ben Bernanke, he says he is “a liar, incompetent, or both.” He ends by predicting that gold will go to $5,000 or higher.

Here’s a quote from the interview:

We’re going to default one way or the other. There are two ways we can default: we can just honestly do it by not paying, or we can print money and pay back our creditors with monopoly money which is probably more likely. Sometime in 2011, if we make it out of 2011, maybe in 2012, we’re going to have a crisis. You know, they didn’t have a crisis in Ireland last year — they still had all this debt — what happened was interest rates rose because the bond market got nervous. Well, the bond market is going to get nervous, they’re going to start to realize the position that they are in, that they are not going to get their money back, or that they are going to get paid in inflated dollars, and interest rates are going to rise sharply in the United States, that’s going to destroy the ability of the federal government to pay its bills, that’s going to crush U.S. homeowners who have mortgages, particularly adjustable rate mortgages, it’s going to crush people that have credit card debt, auto loans, student loans, our whole debt-financed economy, is going to come crumbling down the minute the cost of that debt service rises.

Oh, one more thing: Damn! That Lori Rothman is hot, hot, hot. And we think the cameraman thinks so too, the way he keeps coming back to the leg shot.

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Tagged as: Ben Bernanke, debt, interest rates, Peter Schiff