Peter Schiff, a market analyst who had accurately predicted the 2008 recession and the recent stock market plunge says more is coming. Wait until you hear what he says is on the horizon for America and the global economy in the Trump era.
In an interview with Infowars‘ Alex Jones, Schiff details what we can all expect from the economy. And even though Trump has fought to save the economy, the federal reserve is working against the president. “Unfortunately, he is the fall guy. There’s no way to stop this,” Shiff begins.
“The problem is so big that the minute the Fed has to try to solve it, it’s gonna unleash a much bigger one [problem],” Shiff says. Jones begins his intro by not sugar coating the problem the economy is in thanks to government interference. The economy is a giant bubble and it will pop at some point, not just deflate.
“The Fed were dragging their feet in raising rates while Obama was president. They talked about raising rates but at the end of the day, they barely moved them up. The pace of hikes has increased since Trump was elected, but part of the reason for that…I mean, the media is not talking down the economy; if anything they’re overhyping the economy. Everybody’s talking about how strong the economy is, how everything is great. Everybody is taking credit for this great economy. The Fed wants to take credit for it, Trump wants to take credit for it, so if everybody wants to talk about how great the economy is, the Fed doesn’t have any excuse if it doesn’t raise rates…in order to keep up the pretense that the economy is as strong as everybody thinks, the Fed is in this box where it has to raise rates.
But they [the Fed] can’t tell the truth that it’s really a bubble, and if we raise rates, we’re gonna prick it, so they’re kinda in this bind. And they are still telegraphing that they’re gonna raise rates three or four times this year. And that is the problem.“
Schiff then goes on to explain some of the problems Trump inherited from Obama that will be difficult, if not impossible to solve without a crisis.
“One of the things the happened under Obama, is he inherited a massive deficit from Bush. The deficit skyrocketed in 2008/2009 and so, after a couple of years, the deficits were slowly falling while Obama was president. Now, they were falling from a very high level, but at least they were going down. All of a sudden, deficits are skyrocketing and they’re about to explode out of control. Yet, we have no way to finance them. So interest rates have no place to go but way up. Not just a little up.”
Jones then wanted to know if Shiff thought there was a way for Trump to help America get out of this mess. Schiff says Trump should come clean on how the economy is really looking.
“The sooner he tells the truth, the better…I don’t think this market is going to roar back and make new highs.”
The other problem is Americans have the lowest savings rate in ten years. There is no money for the public to buy undesirable bonds that not even the Chinese will buy. Schiff also says that the social justice warriors need to take a break and focus on the bigger picture.
“Social issues need to take a backseat. If the economy crashes, if the market crashes, if we have a worse economy than the one that Bush left Obama, then none of the other stuff matters. Because we’re paving the way for somebody worse than Hillary Clinton.”
Trump is going to get blamed when the economy tanks because the media has already decided that they are on the side of socialism. When all of this happens, prepare for the free market (which we don’t have) to be blamed and prepare for the tax cuts to be blamed. This will pave the way for Communism. “I don’t think Trump can get out of dodge in time,” Schiff said.
Peter Schiff, a shunned market analyst who hasn’t predicted anything correctly since the 2008 recession. Bert says: new record market highs are weeks away. The government will borrow and spend a record amount in 2018 and nearly all of it goes through Wall Street or other world markets.
“The economy is a giant bubble and it will pop at some point, not just deflate.”
No. The economy is not in a bubble, only the stock market is in a bubble as PE ratios are parabolic. Schiff is comparing apples to oranges. The economy has a way to go if not arrested by a financial markets crash.
The stock markets are in a bubble because capital has been misallocated under ZIRP. As rates INCH back to “normal” a REALLOCATION by investors, which is what you are seeing now, is underway. This may, or may not, trigger a major correction.
It usually does, but it doesn’t have too. Eventually the markets will crash signalling the end of this business cycle as it always does. 🙂
Folks: watch your 401k and IRA and adjust as needed. Retirees watch stks and “stop loss” them, so you won’t lose your investment. May now be too late to stop loss some as they have dropped down below par. gotto check online now, to see if any of mine sold below the stop loss. I’m going for hi rated muni’s!
Schiff seems to be confused about the amount of the deficit.
The last year of Bush, the deficit was only $459 billion. The year before, it was just $161 billion.
Obama’s first four years had deficits over a trillion dollars. He tried to blame it on Bush, but Bush had nothing to do with most of that. Also, Obama’s deficits the next four years were more than any of Bush’s except for one year, 2015, where he slightly beat Bush’s worst year. So Obama nearly doubled the national debt.
Trump’s first full year deficit ($666 billion) was less than most of Obama’s, and this year is projected ($440 billion) to be about equal to Obama’s very best year ($438 billion). Not exactly exploding.
Archivist, your figures are correct. I checked. And as the deficits have added up, so have the total interest payments mandated as being the number Federal expenditure that must be paid. We are at a breaking point. There is no way to continue in a fiscally possible fashion. Adding to the debt exacerbates the problem. Not paying the interest? That would be national bankruptcy. Though I’d actually advise that. The moment over a hundred years ago when we allowed a non-governmental group – the Federal Reserve – to assume control over the banking, currency, taxation and much of the real law enforcement in this country we signed our death warrant as a country. Only the most radical of steps can stop the predicted outcome. Total abolishment of the Fed, all debts cancelled and isolationism to the extreme. Won’t happen.
The last year of Bush in Office and the deficit was 459 billion. Does that count the 3/4 trillion dollars that he gave to the Big Bankers and the Wall Street thieves during his back-door meeting with them?
I think it ALL needs to pop, crash, whatever you care to call it and allow things to get back to normal or as close to normal as can be done. The Gov’t just doesn’t realize that some things should not be messed with and manipulated, such as the stock market, the weather an on and on. Good Lord already. . .
he must be a buddy of gerold celente .they have been preaching collapse for like 4 years now. If you would listen to these people you would have missed an awesome move in the stock market. I suppose when it happens they will say see i told you it was coming and predicted it.
Peter Schiff – very smart economist, but economists are like weathermen – lots to say, can point to current and historical facts, but not so reliable at predicting the the future until it’s on you. Far too many variables in the mix. Yes – the ‘stock market’ will crash – but when this will occur – no one knows. Since he, and many others, are continuing to cry about everything going to crap – when it does they will take credit, and forget about how long it took. ‘Soon’ is an interesting vocabulary word when predicting financial ruin. For the past 10 years, he’s been wrong wrong wrong. Anyone who followed him and bought his products (precious metals) have been stung pretty bad. Maybe the next generation will benefit from his advice – for people looking for financial certainty, not much there.
A broken clock has a better record of being right than Peter Schiff.
Blame-e: YUUUP,ditto for G. Celente and others like him too.
“The deficit fell under Obama”? It went on to 19 trillion. (((Peter Schiff))). Lies…and obfuscates for his brethren at the Fed.
he needs to change his name to Full of Schiff
Never take financial advice from anyone that goes on Alex Jones’s show. Better yet, stop watching Alex jones.
Exactly right – he’s a paid Zionist shill.
Schiff is a joke too as he’s discredited himself all to often – ‘the economy is in a bubble right now’………please! The stock market is in a bubble.
I’m thinking that a lot of the folks who criticize Schiff have been drinking the kool-aid when it comes to bitcoin and other crypto-currencies.
This site is being taken over by leftists, Nazis and deep state toadies.
hey hey lets all pay higher taxes and be richer or so they say. Locally they have taxed medical insurance and new bicycles and want to tax luxury items like a new home and meat at the grocery store. mean while all new homes have to car charging stations for electric cars and be set up for solar energy. Home to kill new housing in one easy lesson in a housing crisis
Nothin will get better till we hit the bottom by whatever “means” and come back up. What we are doin cannot be fixed. The machine is too big, too complex and too corrupt. just my humble hillbilly opinion.
“Heartless”, thanks for the accurate comment. Schiff has been the canary in the coal mine for a long time. The powers that be have defied gravity and kicked the can down the road for so long that most Americans cannot recognize a dire situation. Combine that with overwhelming evidence that most folks are not familiar with the history of the Federal Reserve, and we find a nation fighting an uphill fiscal battle. Debt and unfunded entitlements will make this situation dire as the country tries to keep up with the increasing interest rates on the debt.
Trump has the sole power to enact NDAA and this is what he should do. There should be thousands of names of the criminals who are responsible from those in the government, the media, the funders of the terrorist groups like BLM and Antifa and they should all be arrested in one night, incarcerated without counsel or visitors. If this does not happen we are toast.
For those of you who think Peter is wrong, you’re wrong! He is pointing out all of the underlying structural issues that have never been dealt with and are continuing to worsen. Follow the 10yr & 30yr yields. Yield curves are flattening…..this is why the market is moving down. PERIOD! Thanks Mac for all you do!
The most important sentence in the article was not even highlighted.
” There is no money for the public to buy undesirable bonds that not even the Chinese
will buy. ”
The bond market sets the tone for the stock market.
Turmoil in the bond market equals volatility in the stock market. Very simple.
As long as the bond market keeps crashing, we have serious problems.
Foreign investors are not interested in buying US Treasuries like they were in the past.
Can you blame them? Americans don’t want to buy them.
Most Americans can’t buy bonds because there is no money in their budgets for such items. Heck, most Americans can’t even save any money. True that some of it is due to less than thrifty financial habits but some is also due to the many years of stagnating wages and inflation.
Our way of life is funded by debt, not stocks.
Listening to Peter Schiff is like taking a breath of fresh air. He predicted the 2008 crisis but was several years early. Similarly, he is predicting an even bigger crisis that may actually be starting. Sure, he was years early again, but who could have predicted the unprecedented money printing and interest rate reductions undertaken by the central banks? Schiff’s bottom line is that the US is continuing to rack up unpayable debt and no one is going to keep loaning us money in the form of government bond purchases. As a result, all the US can do is print money to pay our debts, which is already leading to a falling dollar and will ultimately lead to a near worthless dollar with hyperinflation.
Most of this does not apply to most Americans. 87% of us live paycheck to paycheck and couldn’t come up with $500 to deal with an emergency without using a credit card. No, we are like the peasants of times past whereas our prosperity is dependent upon events that are out of our control. In the past, if the king and queen produced a retarded dullard offspring then, guess what, you get to someday be ruled by the aforementioned retard.
These markets are nothing more than a casino for the .01% and when their bets go bad they take it out on the rest of us to cough up the money to pay for their foolishness. That is the true reality of the situation.
John Koyle was a Morman psychic d. 1949, who predicted a 4 year famine, where there would be a stock market crash in the second year of the famine. He said: the republicans would hold power briefly before the crash, after a long period of democrat rule, that the crash would occur in the fall of a year immediately following an unusually cold winter, that the cause of the famine would be something wrong with the sun, that the US president would die after the crash occurred, the US Dollar would become worthless, that the crash would occur on the Friday before a US Govt holiday which fell on a Monday (Oct 5/2018?), said that there would be no power or electricity by the Monday holiday, that the winter would be mild, but that within 3 months or so, there would no fuel, or food, and that a massive die off would occur in America during the third and fourth years. He also said that there would be a race war civil war in America.
NickelthroweR nailed it! Bring on the crash! We need a big time reset. Let’s get back to the good old days of focusing on what is really important, like family. The rat race is overrated. It needs to be done!
“This will pave the way for Communism.”
This is what they planned all along.
O! No! Reading between the lines, this article is suggesting Trump will preside over the Christian ‘Tribulation’ when the anti-Christ will be in control.
Agenda 21 & The Naked Communist….a must read if you truly want to know whats happening, and whats coming.
shame chicken shit, only on a different day and different time.
Peter is perma bear. Yes the SHTF is coming but Trump understands these things and is working to make a smooth transition when the collapse unfolds. The stronger economy that we have the better we will weather the end of this financial system as we know it. Just keep praying wisdom for our Pres. and his advisors. Trump didn’t create this mess. But God put him in there to navigate this disaster and even stay the destruction. Stay optimistic. I like Schiff but he doesn’t see all the solutions. He just sees what he knows about. God has many ways to get us through this nightmare of a financial mess.
The important part of his guess-prediction is that the communists are waiting in the wings to assume command, thanks to the media which is in the tank for them. In that Schiff is so right.