NEW YORK - March 28, 2011 - With gas prices at two-year highs and food prices at record levels, the value of a dollar just does not go as far today as it did a decade ago.

“Get used to it,” says Peter Schiff, CEO of Euro Pacific Capital. "If people think that gas and food prices are high now, just wait for another couple years," he says. "[Prices] are going to be up in the stratosphere."

Schiff blames the Federal Reserve's loose monetary policy for the debasing of the U.S. dollar: rock-bottom interest rates coupled with QE1 and QE2. If the Fed keeps this up, and continues to print money, he says the U.S. dollar could be worth less than toilet paper.

Last week, Federal Reserve Bank President Dennis Lockhart echoed Ben Bernanke's call to end quantitative easing this summer and said he would "support a change of policy if evidence accumulates that the low and stable inflation objective is at risk."

Schiff is calling both Bernanke's and Lockhart's bluff. Without question, the Fed will undergo QE3 and will keep interest rates low for fear of killing the nonexistent U.S. recovery, he says.

Schiff says to expect the dollar to continue losing value while the price of food, gas and other commodities continue to rise.