“ ‘This is going to be the inflationary recession, there’s no way out and it’s a political disaster for Trump because the recession is going to start before he finishes this term, which means he won’t have a second term.’ ”

That’s Euro Pacific Capital’s Peter Schiff explaining to Fox Business following the Dow Jones Industrial Average’s DJIA, +1.33% nasty plunge on Wednesday how he sees this turbulent market ultimately playing out.

“The dollar DXY, +0.23% is going to go through the floor and it’s going to take the bond market with it and the next crisis, it’s not subprime mortgages, it’s going to be in the Treasury market,” he added.

Read: Stocks rise as bullish earnings, retail sales offset trade issues

In his latest podcast, Schiff detailed his outlook as to why he sees gold GC.1, -0.64% , which has already risen about 20%, rallying hard from here.

“This trade war is lost,” he said. “The only question is when do we surrender and how do we admit defeat. Again, I don’t think we’re going to get any kind of deal.”

With the mainstream buzzing with recession fears, Schiff points out that investors are calling for the Fed to cut rates and go back to quantitative easing. But, he warned, this won’t have the impact of prior QEs, where everybody makes money.

“Everybody is weakening their currency to create more inflation,” Schiff, a longtime gold bug, said. “Well, what’s going to happen? The world is going to drown in an ocean of inflation and gold is going ballistic.”

Read:Gold pulls back from highest levels since 2013 as market gains

Listen to the whole podcast: