Euro-Pacific Capital CEO Peter Schiff advises getting out of all dollar-denominated assets.

"Unfortunately, because we raised the debt ceiling, because we continue to spend money, the cost of government is going to be born by those foolish enough to hold U.S. currency," Schiff tells Breakout.

"There are a lot of ways to protect yourself from this disaster that awaits the U.S.," says Schiff, who thinks "the U.S. is in more serious trouble right now than Europe."

Peter Schiff (file photo)

"There are a lot of currencies you can own to get out of the dollar without being in the euro," Schiff says, naming Switzerland, Norway, Sweden, China, Singapore, Canada, Australia and New Zealand as countries whose currencies are solid.

According to Schiff, if you look at the value of U.S. stocks in terms of gold, the Dow peaked in 2000 at about 43 ounces.

“We're now at barely 7 ounces of gold for the Dow [7 x $1,650 = 11,550],” he says. “Ultimately, I think we see that ratio come down closer to 1 to 1,” an occurrence that would require much more Dow decline, a lot more gold gains, or some combination of the two.

Additionally, Schiff's inflationary outlook supports owning oil, agricultural commodities and industrial metals.

"If the global economy is doing well, commodities are going to rise,” e says. “There are a lot of commodity shortages and they will do well because governments will continue to create inflation.”

“They're going to keep on printing money, so commodities will rise."

Reuters reports that Former Federal Reserve Vice Chairman Donald Kohn said that the Fed might need to give serious consideration to further easing if the economy weakens more than expected and underlying inflation comes down.