Peter Schiff: Inflation Tsunami Will SLAM The U.S.

by | Dec 14, 2019 | Headline News | 17 comments

Do you LOVE America?


    According to Peter Schiff, chief executive officer and president of the Westport, Connecticut-based Euro Pacific Capital, an inflation tsunami will slam into the United States. The Federal Reserve’s easy money policies are going to bring the inflation boogeyman back to America with a vengeance.

    Costs are already rising and wages have not kept up with the spending of the average American. But it will get much worse according to Schiff’s predictions. “The reason the Fed had to start cutting rates was because last year the air really started to come out of that bubble,” Schiff told FOX Business’ Liz Claman on Wednesday. “So the Fed had to blow some air back in so this is not a strong economy, it’s never been a strong economy. The whole thing is an illusion.”

    Schiff, who accurately predicted the subprime mortgage crisis of a decade ago, which lead to the Great Recession, has been warning of glaring problems in the U.S. economy ever since. “We are going to be hit with a tsunami of inflation in this country,” Schiff said, adding that he sees the U.S. spiraling into an “inflationary depression.”

    Peter Schiff: ‘We Will Have Inflation And Recession At The Same Time’

    Data released Wednesday morning showed consumer prices rose 2.3 percent year-over-year in November. The Fed’s preferred inflation measure, core personal consumption expenditures, grew at an annual rate of 1.9 percent in October, just below its 2 percent target. A new reading is scheduled to be released on Dec. 20. Currently, inflation remains muted, a concern that Fed Chairman Jerome Powell reiterated on Wednesday. -FOX Business

    And yet, Americans have noticed their bills are increasing at a quicker rate than their paychecks.

    Costs Are Spiraling Out of Control

    Schiff called it “ironic” that Powell began Wednesday’s press conference praising former Fed Chairman Paul Volcker who died earlier this week, saying the current Fed chairman would “resurrect the high inflation that Paul Volcker buried.”  Volcker, who served under Presidents Carter and Reagan, “broke the back” of double-digit inflation that ran rampant in the U.S. during the late 1970s and early 1980s by hiking the fed funds rate to a record-high 20 percent.

    What’s ironic is that we are somehow expected to believe that the skyrocketing costs we all paying for things is not related to inflation and the Fed’s money-printing scheme. “In the past, you wouldn’t want to let the inflation genie get out of the bottle, but that is what Powell is saying, we’re going to let it out of the bottle,” Schiff said. “Well, you know what, once it’s out of the bottle there is no way to put it back in.” And it’s already out.

    Schiff has also been sounding the alarm about the debt load being carried by both the government, the public, and corporations.

    Peter Schiff: “The Real National Emergency Isn’t At The Border. It’s The National Debt!”

    Peter Schiff: “We’re Not Borrowing Ourselves Rich, We’re Borrowing Ourselves BROKE!”


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      1. Inflation is good for the vice trades: sex, drugs, booze, scams. Look for all of these to go insane. I remember in New York in the 1970s 12 year olds turning tricks in Times Square. With the Internet this will go mental.

        Want it, you will get it as fast as Deliveroo.

        Digital shylocking will be Huge. Credit with insane interest rates and shackles that mean you literally have to pimp your wife and daughter out to get away from payments. This is already the way things are done in Asia.

      2. Howdy Y’all,

        What follows is a bit of musing on my part, but bear with me…I believe that you’ll find the wait to warranted.

        Roughly 14 weeks ago the FED began “Not QE” which varied weekly thereafter in amounts varying between 32 and 46 Billion dollars weekly. Various explanations were given by a variety of pundits, few of which seemed plausible.
        Then, roughly 2 weeks ago an industry insider – courtesy of ZH – let out that behind the scenes, JP Morgan had over the course of a working week removed $250 Billion (cash) liquidity from the system. It strikes me as curious that – essentially – the FED appeared to be effectively prescient as to JPM’s future actions. At least that was my first thought.
        However, Friday (again via the Hedge) we get an article which in the details lays out an execution by the FED which will – if implemented as described – effectively roll roughly $500 Billion MOAR into the hands of the Big 5, JPM, CITI, GS, BOA AND WF between December 12 (now) and January 16, 2020.

        My first thought on reading that was simply, “WTF?!”

        That’s when the second shoe dropped so to speak. Apparently, there is a credible rumour that China is on the cusp of instituting it’s own Crypto-Yuan…backed by and tied to it’s own Gold reserves. For those of you who haven’t been keeping track of what the – likely – status of those reserves currently are allow me to digress here somewhat.

        Several years ago, Eric Sprott – the Canadian precious metals magnate – committed the efforts of damn near his entire staff for more than a month attempting to put some upper/lower bounds on what that might amount to. When his staff reported back to him the results were astonishing, to say the least.
        Surprisingly- on the American side – one finds the best proxy for tracking Gold/Silver IN/OUT lies with the US Naturalization and Immigration department who (suprisingly) are tasked with the accounting and record keeping associated therewith. Now, Sprott’s staff could only backtrack those records to 1991…but according to what specific assumptions they made relative to all other potential sources the results were difficult to accept at face value. The strictest accounting gleaned from the record set indicated that in excess of 4000 TON of Gold had exited North America in the period described…but that was SOLELY based on the American INS dataset. Everyone following on so far here?

        S’OK? What then? Well, the other countries of which the West consist aren’t necessarily as transparent as the US is with respect to tracking Gold transfers, hence Sprott’s people began constructing a series of assumptions about the transfers IN/OUT and the final figures they came to were on the brink of terrifying.

        At least 8000+ tons of Gold had left the West in the period at a minimum, BUT…according to the assumptions involved that figure could be as high as 12,900 ton. Bear in mind that per the 1960’s era inventory of Ft Knox, the US supposedly only has reserves amounting to 8192 ton of US Gold.

        Now, another salient point here. Did you know that it is a crime punishable by Death to be apprehended exiting mainland China with Gold? The inference here is that ALL Chinese Gold production remains IN China. That particular figure is pointedly a Chinese state secret which naturally remains unreported however, based on a few spot mining figures which can be accessed publically, the highest probability is that Chinese internal production has allowed them to amass an amount in excess of 8500 ton.

        Now begin adding the figures appearing above. Not infrequently these days you’ll hear the financial pundits referring to China’s 20,000 ton Gold stockpile…which given the preceding is more than just barely plausible. Now, IMAGINE a crypto-currency backed up by a horde of that magnitude released onto the World stage. Mr Schiff’s assertion is – IMO – radically understating the potential here involved. China could – under those circumstances – effectively vaporize the entirety of the basis of the Western financial system literally overnight for who would trade anything of value for mere fiat when a Gold convertible currency existed?

        Watch the FED closely over the next few weeks, what we’re seeing – in terms of magnitude – is either the FED preparing for Financial War OR the Bankster’s getting ready to pull the Main Breakers and RUN.

        I simply cannot get any other scenario to fit the facts at hand.

        As always, be prepared Kiddo’s…what’s coming is PURELY Pass/Fail.


        • No country will return to a gold convertible currency unless all do. Reason being if someone can print currency with no gold convertibility, they will trade their bills for gold convertible bills on the FOREX market and then cash them in for gold. The ones with the convertible currency will find all it’s gold leaving the country. This is similar to what was happening to the Fed’s gold when Nixon defaulted and closed the gold window in 1973. The FRN was one of the last gold convertible currencies left and the flows of gold were going the wrong way.

          The US has no gold. It was given to the Federal Reserve (a private corporation owned by it’s prime dealer banks) in 1933 when the US government defaulted.

          I can’t remember the name…White Lily Hoard?…or something like that, but after WWII the US government confiscated Japanese gold that was plundered from China during the war. Tons and tons and tons of it. Much of it was hidden in the Philippines. There were many shiploads transported back to the USA. Some say this gold became the basis for the Black Eagle Trust Fund that US black ops were funded by since then. Some of the bonds from the Black Eagle Trust Fund were involved in 9/11 and were liquidated in the days following 9/11 when the Fed allowed accounts to be settled without verification for a couple days. In other words, never to be publicly seen.

          But…I ramble. It’s a deep, deep rabbit hole. I don’t think I’ll go back down it again. Too much conspiracy truth down there.

          Be well JOG

        • Not White Lily but, instead, Golden Lily.

      3. What’s your point?

      4. National debt load and individual debt loads are very bothersome but the economy is not overheating and consumer costs seem to be in check,; however I would jewellery of cash in hand.

      5. P. Schiff has little credibility with me, he has been repeating economic / financial collapse for several years, often saying a collapse event was imminent. Yes, a collapse must occur for a few reasons, but only a small handful of “elite” insiders would know. The people wouldn’t know until we are at the cusp, when it’s too late to change things. The reasons a collapse will eventually happen are due the boom/bust policies of the FED, various cycles of expansion and contraction built into our type of economic and financial systems, extreme hyper wealth concentration, and the hideous various debt that has accumulated in the US (which in reality is magnitudes worse than anyone can imagine – IT WILL BE DEFAULTED ON sooner or later). A fifth reason might be a collapse initiated by TPTB for nefarious purposes.
        A collapse would be more than an economic or financial event, even more so it would create severe national political and social repercussions. No point worrying about it, I believe we are about 5 years away from it. Just prepare for it as much as possible for your family and relatives and friends between now and then. Rather you should look at a collapse as an opportunity to exploit – Secession.

        • Confederate Bill, you are so right. Economic collapse is Liberty’s last best chance.

          Sadly we lack the man-stuff to take the offense. That said you are right. There is no point worrying about it. Focus on building self reliance and a tribe. Where you are and who you are with will make all the difference.

          ‘Secession is the only vote in history that ever counted.’ – Bill Buppert

      6. OK, Doomer.

        You’ve been wrong for so long you get no glory when inflation and recession finally happen.

      7. Schiff is WRONG again. Here’s why. Yes the FED is printing money and making the Investment Class incredibly rich, but for an “inflation tsunami” to happen all of that money printing has to reach the masses; as I have posted in years past.

        It hasn’t. It won’t. It didn’t before.

        All of this “new” money is just going into the banks to bolster their reserves which had previously been drained to very low levels. The FED may also be quietly propping up Deutsche Bank to avoid an economic collapse of the EU.

        The Crash, when it eventually happens, will be a massive deflationary event wiping out trillions of dollars of equity valuations in a heartbeat; destroying a HUMONGOUS amount of dollars overnight.

        The War that follows will be the means by which the economy is stimulated and the global population reduced. Too many useless eaters who are producing too little and consuming too much. 🙂

        • dk – I too believe it will be deflationary, (in fact, for reasons not explained here it has to be deflationary) in theory you have some good points, but in practice won’t make much difference to most of us. The net economic and financial effect on the people will be about the same.
          But that’s not the worst part, in the developed world, every single massive inflationary or deflationary crisis has always been met with statist authoritarian gov’t. First and foremost gov’t is monolithic and exists for itself, the primary response is always first curtail civil rights and liberties of the people and simultaneously concentrate authority. The worst the crisis the more heavy-handed the state becomes. History also shows regardless the reason, once is civil rights are lost they are never regained, that’s one more reason why there must be Secession.

      8. Been hearing this for 40 years …………….

      9. Things are starting to fall apart. Basic Energy laying off 350. They were once owned by the Wilks Brothers, who made Billion s on Fracking. Now Fracking is slowing down and people are being put on the unemployment line. Obama care joke has cut the buying power of Americans. Well the ones that work that is…
        Setting on my porch in my retirement chair with a ar in my lap… Cannot say that this article will not come true.

      10. Something is coming!!!

      11. How about trying a ‘novel’ idea? No more ‘public’ “servants”. At all. No more paychecks, pensions, vacations, medical care, education, transportation, food expenses, housing to anyone who supposedly works for the people of this country. Let the people, the private sector pay for whatever is now being derived from all the agencies, departments and so on. Not by taxation; rather, by being directly employed on local levels for all positions. Return competition to the marketplace. Make people who now lobby for auto-raises and other benefits have to show they are performing their tasks to the satisfaction of the employers. Take teachers for example…. if Mrs. Smith’s class does well and actually learns their lessons, give her a raise. If they don’t, fire her and hire someone who does the job they’re being paid to do. Apply to all other employment as needed.

      12. As if things aren’t bad enough already. It’s going to hit US like a ton of bricks. More of the same for me. Beans bullion bullets band aids. Get some.

      13. Obama printed $3 TRILLION (“Quantitative Easing”), fiat money that was supposed to (but did not) boost the economy. That money didn’t help because the banks, instead of investing it in personal and business loans as intended, put it into “safer” bonds and paper investments in the stock market for a better profit. This kept that money out of general, consumer circulation and prevented inflation.

        Now that our economy is booming, banks now see a better investment in business and personal loans–finally putting Obama’s fiat money into circulation long after Obama printed it. How much inflation it may cause depends on how quickly new jobs and an expanding economy can absorb that excess money.

        In short, the inflation is Obama’s fault due to his “Quantitative Easing” policy–printing money–not anything Trump has done.

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