The United States economy is about to crash and it will take the dollar and the American standard of living with it. Peter Schiff, who currently serves as the CEO of Euro Pacific Capital, says it is time to prepare for the global market crash in light of the recent downturn.
“All the signs are already there. Look at what’s happening out there. The stock market is falling, 40 percent of the S&P is already in a bear market. Look at homebuilders, the housing stocks, the financials, the retailers – all these are the same things that were happening in 2007 leading to that crisis,“ Schiff, who accurately predicted the 2008 recession, told RT America. We don’t have much time left in this economic bubble if Schiff is correct.
After the dramatic early drop, U.S. stocks recovered but still finished lower after a wild day on Wall Street. By the closing bell, the Dow was down 126 points, or 0.5 percent, recovering most of its early losses. The Nasdaq closed down 0.4 percent, while the S&P 500 shed 15 points, finishing 0.6 percent lower. Schiff urged people to be prepared for not only an economic crisis but a political crisis as well with the current administration likely to take the blame.
According to Schiff, the US national currency is set to meet with the worst losses along with the American standard of living. Although the Trump administration is to blame for the trade war that is already wreaking havoc on American’s wallets, Schiff says the political crisis about to follow will be much worse.
“So, what you’ve got to do is get out of U.S. dollar assets. The dollar is going to be the biggest casualty along with the American standard of living,” he said, adding that foreign stock markets, especially emerging markets, currently depressed by the strong dollar would see a strong rise. “They are going to see a boom when the dollar weakens,” Schiff said.
The U.S. household debt, which is about $15 trillion, represents a crucial issue for the standard of living in the country. “Everybody is loaded up with debt, and it’s not like we began this monetary experiment without much debt. We had a lot of debt in 2008. In fact, the financial crisis was about debt, it was about our inability to pay the debt that we had,” Schiff said.
“But instead of addressing the problem and allowing the debt to be paid down, the Federal Reserve led us down the primrose path into much deeper debt by keeping interest rates at zero and holding them for so long. The Federal Reserve actually encouraged an overly indebted nation to borrow even more money,” Schiff said of the Fed’s terrifying response to the recession in 2008. But now, interest rate hikes are only going to destroy the economy which is barely hanging on. “So, everybody is loaded up with debt. And guess what? Interest rates are now finally rising, and that means the cost of servicing that debt is going up, and this is going [to] be a problem just like adjustable rate mortgage was a big problem in 2008, when these things were resetting,” he said. “People couldn’t afford to pay. Well, the same thing is going to happen on a national scale. Rates are growing up, and we are too broke to pay.”
The sad truth is that there’s no way to escape the inevitable. The ruling class has destroyed markets and trade and soon, we will all pay for trusting our lives to psychopaths who want nothing more than to control us and steal from us. “It’s impossible [to avoid an economic crash] because, in fact, we kept it going so long that collapse is going to be that much bigger, and sooner we face that reality the better. But no politician wants to face that reality, they want to pretend everything is great,” Schiff said during his interview with RT America.
“If the government is collecting less revenue, then the deficits are getting bigger and so the government has to borrow even more money, and that becomes an even bigger problem,” he said. “What we need is smaller government, but nobody wants to shrink government, including Donald Trump, who is now the defender of Social Security and Medicare,” Schiff said.
About 5 minutes after any collapse every progtard in America simultaneously scream, “republican president, republican fault”
The real casualties are a million times worse:
Aside from the financial world going to hell in a hand basket, why not get the awesome NASA astronauts – whose space suits were able to withstand the Van Allen Belt of radiation – and have them (or maybe some of our politicos) don these tinfoil astro-suits and go in and clean up Fukushima?
After all, if the astronauts’ “space suits” were designed strong enough for moon travel, they must be strong enough to deal with Fukushima!
Thx for video link.
“The United States economy is about to crash and it will take the dollar and the American standard of living with it.”
On the contrary, with TRUMP in the Oval Office money will FLOOD into the USA as Europe & China crumble. That is happening already. DUH, I told this community years ago that this would happen as the business cycle ends. It always does. This time is not different. Policies are in place for a historically SHORT recession and a QUICK turnaround for the USA as manufacturing relocates from China to the USA.
KING DOLLAR WILL BE THE LAST CURRENCY STANDING. 🙂
Europe & China are toast. The USA will “reload” after a short recession: ie less than one year. 🙂
My outlook on things as they currently stand doesn’t seem to be as sanguine as yours. Hope you’re right and I’m enormously wrong, but not sure how it could be that way.
jaxx: It’s the flaw in my character. 🙂
Well they deserve at least half the blame.In this case Trump has claimed this “booming economy”
Perhaps the scum illegals will up and leave. A silver lining for everything.
If my standard of living gets any lower I’ll be pushing a shopping cart down the road.
My Walmart cart only goes to the end of the parking lot. It’s getting crowded on the perimeter. 🙂
Well keep your hands off my cart! In fact, I already own 2. I’ll be the man!
MUST WATCH VIDEO FOR ALL AMERICANS.
9-11 TRILLIONS: FOLLOW THE MONEY
THE FOLLOW UP VIDEO:
9-11 War Games
Probably, as soon as the 40hr workweek, 1950’s appliances, and very, very fine house became the new normal, normalcy became a privilege or ideal, not afforded to most people, cash-and-carry and lifetime guarantee.
If we are past the age of primitivism, if the land has already been tamed and industrialized to first world standards, “authorities” should be held to their end of the social bargain, as matter of “adulting”.
When has Peter Schiff ever been right?
Schiff’s call: Quantitative easing will not improve the U.S. economy.
Schiff’s call: Gold will rise to $5,000 within a few years.
Schiff’s call: The dollar will crash.
Schiff’s Call – We are all going to die!
What I have found odd this last week or so with all the market drops, is that even PM’s have been in red along with everything else?
The market corrections have eliminated many tens of billions of dollars in equities; suggesting less liquidity, fewer dollars, and future suppression of inflation.
Gold typically rises with inflation, falls with deflation. Palladium (I have a mountain of it) is at all time highs and moving up over $1100.
Get out to the mountains this weekend BJ. Move your hiney to find some shiny. Take the family. 🙂
At this point there are only 2 options; 1)default; or 2) massive money printing/inflation, either way w.r.Fk’d. The only thing left to be determined is who controls the narrative…the W.H. or the Fed.
At some point you have to ask yourself….”who is John Galt”?
No. There are more than two options. Read a text book instead of Alt Media. Too much Alt Media from Alt Media Self Proclaimed Economic & Financial Experts with no education, experience, or special expertise in the financial industry has the same effect on your brain as CNN has on Snowflakes.
Don’t believe the propaganda !!! 🙂
Schiff is an exception to that Rule as he does have a financial education & experience; but his “judgement” is clouded because he wants to sell you gold (and at a higher price) like his father did before him. Think Daniel from Future Money Trends, but with a pedigree.
It’s in the genes. 🙁
“The United States economy is about to crash …”
Schiff obviously thinks the Democrats are going to retake the House and Senate back in the elections.
Well said! Hopefully Schiff is wrong.
Peter Schiff couldn’t be more wrong. The $21 trillion that Mark Skidmore is looking for
goes to the Plunge Protection Team to keep the fake markets going.
This whole financial situation has me almost peeing in my pants!!
However, I don’t agree that only “Trump” will be blamed. NO, the deep state and Trump are in cahoots– trump will be blamed by the democrats and the Fed will be blamed by other people– a PERFECT SET UP!!
They both can blame each other, no one will know the truth and the Trump and the rest of the 1% will cash in on the scam!!!
The American people–AS USUAL– will suffer the horrific consequences of the Gangster elites!
Did you see the family photo of the Bush family? There was papa Bush, small fry, alcoholic-Bush, the Clintons, the Obamas, and the Trumps… and they all WERE SMILING!!! They belong to one club. We belong to another club.