In a recent interview with the media outlet, RT, Peter Schiff declared that the talking heads who call the economy “volatile” are wrong. Schiff says the economy isn’t volatile, it’s a bubble, and “this is the beginning of a much bigger crisis.”
“It’s not a volatile economy, it’s a bubble economy. Thanks to the Federal Reserve, they inflated an even bigger bubble, on purpose, than the one they inflated by accident that popped in 2008. And so the economy is in much worse shape structurally today than it was before it fell apart the last time. So, this is the beginning of a much greater crisis, of a much greater recession than the one that we experienced back in 2008.” -Peter Schiff, via Seeking Alpha
During a recent interview on RT News with Rick Sanchez, when asked what the Federal Reserve did wrong, Schiff replied “everything,” but there were some mistakes that were more glaring and disturbing than others.
“But the biggest things they did wrong were lowering interest rates down to zero, practically, and leaving them there for pretty much the entirety of the Obama presidency. And then they’ve barely raised them. They’re still at 2%, which is very low. They also did all the quantitative easing where they printed a bunch of money and bought US government bonds and mortgage bonds. That enabled the housing bubble to reflate, and that enabled the US government to go much deeper into debt. So, the government didn’t cut spending, which is what we needed. They increased spending. But it also enabled corporations to lever up and buy stocks. It enabled more Americans to go deeper into debt. So, it took a gigantic debt bubble and made it much bigger. And so now we’re on the precipice of a much worse crisis.” –Peter Schiff
Schiff also said he doesn’t believe the Fed will continue to raise interest rates either. He thinks that they will drop rates down to practically zero again once the recession has officially been declared, making a bad situation even worse.
“That is going to take a very bad situation and make it much worse because it’s not going to work like it did last time in that it blew up a bigger bubble. This is going to blow up in everybody’s face. It’s not going to cause real estate prices to go up or stock prices. It’s going to cause food prices to go up, gasoline prices. It’s the cost of living that’s going to rise, not the stock market. And so this is going to be an inflationary recession.” -Peter Schiff
Schiff also warned of a Democrat win in 2020 thanks to president Donald Trump taking responsibility for the current economic bubble. Therefore, when it pops, Democrats will be able to blame the entire crash on Trump. Schiff said the people aren’t going to vote for four more years of Trump during a recession. They’re going to vote for socialism, “Which is going to give us four more years of hell.”
“He [Trump] put his brand on a bubble and when that bubble pops, it’s going to be very easy for the Democrats to blame all the problems on Trump and that’s what’s going to enable them to win in a landslide in 2020.”
Economic crisis are when people make big money.
So prepare for them and situate yourself to take advantage.
Or don’t prepare and finance those who do as they take advantage.
It is the same article over and over, just the dates have changed.
I quit reading economic blogs as none of them have timelines or precise info. incl Celente, others.
There seems to be something about the nature of gloom and doom disaster predictions you are failing to grasp.
So here it is, Rule #1: Never give any prediction specific enough you can be held accountable for it when it doesn’t happen but always be vague enough you can claim credit for everything even a little bit similar that does happen.
Laura Ann, agreed. Every economist and his cat is chicken little.
The articles remain the same, because the facts remain the same.
They ignored him pre 2008 too…
Yep same old same old crap. I want to see the bubble burst. The sooner the better.
Before i get to old to enjoy it. Maybe not enjoy it, but you know. Get it over with already while I’m still pretty healthy.
it almost seems like nobody can actually READ, and COMPREHEND what schiff is saying…….that damn guy is scary….and RIGHT!!!
Inflationary recession means that the price of gas and food will rise. So prepare by turning your property into a food producer. Improve your soil. Compost leaves and work them into the dirt.
Anytime you can grow food is a plus. Especially heirloom and organic. Some things need to be hybrid for the yield, but always stay away from GMO. Gardening and raising my own small critters is very stress free and fun for me. You are right, food I believe will skyrocket in price. Grow for your family first then IF there’s any left, it should bring good money. I’ve been raising and baling hay for a long time. I was finally able to get back into the cattle since my early (just tired of the factory life), retirement. I think I could probably make more $$ by selling hay and not feeding to the cattle, but at least with the cattle, I’ll always have something to eat. Hay just doesn’t taste very good to me.
that’s my take on it. Ive prepped . If its bound to happen sooner or later I prefer sooner. why wait? every day im just getting older.
it’s going to be very easy for the Democrats to blame all the problems on Trump and that’s what’s going to enable them to win in a landslide in 2020.”
Heaven help us. If Trump does not win, we are toast. He knew DC was broken….he just did not realize how bad it really is.