"And it's my opinion that economies are served by falling prices, by increased production, increased efficiencies, that lower consumer prices, that that's what makes people better off. And I think the idea that central banks need to deliberately create inflation because it's somehow a necessary ingredient to economic growth is wrong. Inflation is actually worsening the problems in the economy."  Roubini said that he saw continued low inflation ahead.  "I'm in favor of low inflation, a target of 2 percent. You were arguing that deflation was good. I was pointing out that in the period of time that we had deflation, the Great Depression, or the stagnation of Japan, in the last 20 years, or what's happening right now in the euro zone where you have deflation and recession, deflation is associated with lack of aggregate demand that implies an economy is in depression," he said. "And therefore, deflation is a symptom of lack of growth and aggregate demand. Why do you think deflation is good? That's nonsense."  Roubini also argued that gold prices would fall and that the U.S. dollar would strengthen.  Schiff brushed off Roubini's arguments.  "Let me give you the facts. Americans use credit cards. They buy things, and they pay 18 percent interest. Why don't they wait a year, save the money and save the 18 percent? Because they want it now," he said. "There is no period in history where consumers have not bought things because they thought the prices would be cheaper. We know the price is going to be cheaper? We all own cellphones. We know if we wait a while, we can get the phone cheaper. But we don't wait because we want it now. This is all nonsense."  — By CNBC's Bruno J. Navarro. Follow him on Twitter @Bruno_J_Navarro.
It was a battle of the bears between Nouriel Roubini and Peter Schiff. What began at the 2014 SALT Conference, continued on CNBC's "Fast Money."