Oil's swift and sudden decline is just the latest Federal Reserve-induced bubble to pop, and if history is any indication, stocks and real estate could soon follow, according to Euro Pacific Capital's Peter Schiff.
"If oil prices are artificially inflated by the Fed, so are stock prices and real estate prices," he told CNBC.com's Futures Now.
Crude has lost almost half its value since its June highs, as a supply glut and a rising dollar have conspired to crush crude. The pain has hit other commodities, as well. Gold, copper and even wheat has lost a respective 13, 13 and 15 percent from their recent highs.
According to Schiff, the brutal price action across the commodity complex is simply the result of the Fed pulling back from its massive stimulus programs. By Schiff's thinking, other assets are soon to follow if the fed continues its course.
"All these bubbles are going to burst because of the same pin, which is the Fed withdrawing stimulus."
Schiff compared the recent decline in oil to that of the Great Recession, in which oil prices fell as much as 70 percent between July 2008 and February 2009. And, like then, he sees cheaper gas offering little benefit to the consumer.
"Look, oil prices fell from $150 per barrel to $32 a barrel in 2008; that helped the consumer too, but it didn't stop the financial crisis," he said. "The same thing is happening now, and you are whistling past the graveyard if you think what's happening is good news."
Schiff believes the Fed is stuck in a vicious cycle, unable to back away from the very same policies that he claims have created a bubble in the first place.
"I know [the Fed] can't raise rates or they'd bring about the worst financial crisis since 2008," said Schiff. "I don't know when they are going to tip their hats but they are going to have to come clean about launching QE4. Because if they don't do it, they are going to have a worst financial crisis than we saw in 2009."
Of course, Schiff has made similar predictions many times in the past couple years, none of which have panned out well. Still, he's sticking to his guns and remains as convicted as ever.
Said Schiff: "When this market turns, it's going to turn fast and it's going to take no prisoners."