Peter Schiff isn’t known for mincing words or sugarcoating the evidence. The financial broker and economist said in an interview “the economy is going to blow up like a bomb,” and when that happens, Donald Trump will take all of the blame.
Not even a full minute into an interview with Alex Jones of Info Wars, Schiff says “it’s not a good thing” that the economy is going to crash and burn. “Unfortunately, that’s what Trump has inherited from Obama. But it’s not even really just Obama, it’s the federal reserve. It’s the monetary policy that has been passed like a baton from Clinton to Bush to Obama and now to Trump. And we’re near the end of the game and unfortunately, Trump’s gonna be the fall guy. This thing is all gonna collapse while he’s president.”
The tax cuts will give Democrats a reason to blame the collapse all on the Republicans, says Schiff.And we are getting close to this collapse.
“The important thing, is if you look at what’s happening in the dollar, for example, last year was the first year in five years that the dollar went down and it was the biggest decline in 14 years. We has the biggest drop against the Chinese Yuan in nine years, and in fact, I think this year we’re gonna fall to an all time record low against the Yuan. I think we’re gonna hit record lows against other major currencies like Euro and the Yen maybe by 2019 or 2020.”
Jones then asks Schiff what Trump is supposed to do to stop the crash. Schiff says there’s nothing he can do. It’s set up to crash so the United States will end up with a left-of-socialist dictator such as Bernie Sanders as the next president.
“He [Trump] campaigned and said it [the stock market] was a bubble. It wasn’t his bubble. Now it’s his bubble; that’s the problem. But if he would have said ‘it’s a bubble and it’s going down,’ it wouldn’t have been his fault. Because part of the cure for the economy is deflating these bubbles. It has to be done. Someone has to rip this bandaid off and he was elected to do it.”
Jones then asks Shiff to walk him through what an economic implosion would look like.
“Here’s how it’s gonna go down. So, what’s gonna happen is interest rates are gonna keep rising, commodity prices are gonna keep rising, the dollar’s gonna keep falling, so you’re gonna start to see pick-ups in the official inflation rate. And so, rising consumer prices and rising interest rates are gonna start to be a powerful headwind for the economy because Americans are gonna be spending a lot more money on basic necessities, if they have an adjustable rate mortgage…costs are going up. Credit card debt, auto loans, all this cheap money is gonna be gradually going away and the economy is going to be weakening. And as the economy is weakening, unemployment is gonna start to pick up. Now the Fed is gonna see this. The Fed is gonna see the economy slowing down, and if they continue to raise rates, it will go into recession. Now, that’s better than the alternative.
But, the alternative, if the Federal Reserve decides that they want to prevent a recession or maybe fight off a recession if it happens and they don’t recognize it in time, if they wanna prop up the stock market, then what they have to do is call off the rate hikes. In fact, I think that they have to go back to zero, they have to launch QE4 in order to keep interest rates from really spiking and to prop up the market, but that will set off a currency crisis. The dollar will plunge, not just make new lows. That will set of an economic crisis that’s far worse than the financial crisis or the recession that we are trying to avoid.”
Schiff then says the problem is also unfunded liabilities such as social security and Medicare. He says that China doesn’t have any of those. The Chinese rely on themselves, have disposable income, and save 30% of their income and taxes are almost nothing to keep businesses booming. While Americans pay a lot of taxes, save only 3%, live paycheck to paycheck, and rely on the deeply indebted government. Becoming self-reliant and preparing yourself for this crash will give you a hand up in during the dollar’s collapse.
Jones then stated that “betting against America,” wasn’t a good idea. But Schiff fired back.
“I’m not betting against America. I’m betting against the socialists and central bankers who have destroyed America. In the long run, maybe America’s gonna come back. But first, we’re gonn have to pay the piper.”
WE all know this is going to happen but when? I have been expecting this for years and now being 70+ I won’t be able to physically do a heck of a lot. I will try my best but I suspect I will be toast when violence starts. God Bless, James
yup!
dont worry james, once the SHTF happens food will be scarce so you can be of use as food for the young warrior zombies.
james, but I suspect that since your generation got us into this mess that you have been worthless for a very long time. i bet you are an NRA member too.
you and that idiot Kevin2 would maked a great zombie sandwich.
Go away troll
Does anyone have a timeline for this melt down? I need to unload some stocks and the house, will be moving into a rental so as to be mobile.
oh heeeeellll no! i knew 14 years ago it had to end any day now. but never underestimate what steps the gubmint will do to keep all the plates spinning. we KNOW the math says we are getting close, but NObody can tell you with any certainty WHEN. i sold my house in 2006, well after the bubble had popped, for triple what i paid 10 years earlier. 2 and a half years later i bought another at half price….in 2014, i again sold for a few thousand dollar profit…but i sold too soon, and missed a hundred grand profit i COULD have made. i’m ok with my decision, as i’ve made a few investments since then…my turn to buy back is coming very soon. the math say so. the UPside is VERY limited, but the DOWNside?….are you prepared to lose HALF of the value in the house? this time i think things will be SO much different. the end is nigh.
The reason Peter Schiff says that the economy must crash to heal, and that Alex Jones’ recommendation that the bubble be kept propped up by money-printing would do even greater damage to the economy the longer the bubble lasts, is because of Peter’s understanding of something called the Austrian Business Cycle Theory (ABCT).
ABCT cannot predict the timing of crashes due to the very nature of false booms: They are created by false price signals that lots of people read as profitable long-term investments, and they necessarily pop when people decide they are tired of taking losses.
These assessments are entirely subjective, which is why you can’t time crashes (maybe you guess right, but there is no logical way to time it).
The following videos will be very helpful for those who want to understand the Austrian Business Cycle Theory:
[Duration 00:49:11]
Why You’ve Never Heard of the Great Depression of 1920 | Thomas E. Woods, Jr.
https://www.youtube.com/watch?v=czcUmnsprQI
[Duration 00:40:07]
Monetary Lessons from America’s Past | Thomas E. Woods, Jr.
https://www.youtube.com/watch?v=91OIBnrjzLU
For those of you wondering who this Tom Woods guy is, he actually guest-hosted Peter Schiff’s radio shows from time to time, so they know each other well.
I sorta like Schiff’s bluster, but he’s been shrieking for many years now about the collapse and the resulting skyrocketing value of gold in the aftermath. It gets kinda samey after a while.
Don’t get me wrong though, …I think a hard reset is what is needed to burn out the deadwood, and I’m more prepared for this than most sheeple I know. In the meantime, I’ll try to appreciate what I have in friends, family, and God’s grace.
Grunty
Grunty…..TPTB have been able to keep kicking the can down the road. Sooner or later, you run out of road.
Yes…Schiff has been talking about this for years. The fact that it hasn’t happened yet in no way means that he is not correct.
Schiff accurately predicted the mortgage bubble before it happened….when just about everyone else was saying that there was no end in sight.
There is simply no mathematical possibility that we can ever eliminate our debt by conventional means (economic growth or tax increases). Sooner or later there will be a reckoning. Nothing was done to correct the problem during the last crisis…they simply piled on more debt. It’s something like being $100,000 dollars in debt and having the income of a burger flipper at McDonalds. And instead of going bankrupt, the bank keeps giving you loans so you can make your monthly payments. Eventually…..the bank will stop making the loans, and that’s when you go belly up.
We will end up with either a default or hyper-inflation of the currency. The effects on the common working man will be pretty much the same regardless.
What’s new. Just like every other president, if the markets go up its all because of them, and if it crashes it’s all their fault.comes with the territory. Now let’s get back to getting g rid of the dreamers and building the damn wall.
yes the Big Beautiful Wall. i want to sit on top with my Ruger 10/22 and defend the wall.
Research the economic miracle of the third Reich.
It is a blueprint for what to do to save a failed economy.
_
Government seizing assets from individuals many wealthy. Getting financial help from Wall Street (Prescott Bush being a major facilitator) certainly helps; No miracle, a nightmare.
I have been meaning to read up on the financing of the third. Anthony Sutton wrote several books about such topics. I think a good bit of the economic recovery was american banking and industrial investment, wasn’t it? And that was sustained during the war. There are congressional records of damages paid out to Ford motor company after allied bombing campaigns destroyed Ford factories in germany. and the factories were making munitions for Germany!
I would think you could go a similar route with economic policy, but you would have to have a plan to tapper it and exit from it. Some suggest that Lincoln had such a plan after the war with the south, but he was killed and the increased federal power was retained. Even if we pull this off, if it requires such actions, it will end in disaster if the deep state is not removed and removed without any possibility of returning.
MWK
Read “Trading With The Enemy” for a real eye opener. The most amazing thing is even Hitler looked the other way when German corporations did it. One must come away with the idea that if the multi national corporations had that much power in the 1940s during a real war what is their reach and capacity today? The question is kind of redundant; their control almost omnipotent.
(((multi national corporations)))
the fake money is the basic problem
What… kill everyone?!
Pfff Third Reich…
Yeah what a miracle they killed a bunch of unarmed people and took over a bunch of poorly defended countries and managed to save their asses for a grand total of…. drumroll… SEVEN YEARS!
https://www.youtube.com/watch?v=g9lQ_an0cCI
These days with modern military tech you could realistically count that as 70 days… all the way down to 7 minutes if you piss off the wrong people.
Your correct. Our military enforces the monopoly use of the Petro Dollar. and that’s is what is keeping the USA afloat.As long as the military can maimtain its domination there will not be a total meltdown.
Tired of these idiots on here making it sound like the third Reich was a work of genius. He was a homosexual meth head. He was trash the ultimate white trash, a lit of good white Americans died killing his kind. They were pathetic and filth. They were murderers and rapist. They were more in line with filthy illegals than a good Christian American.
Schiff has a point. I’ve thought that Trump should STFU as regards taking any praise for this hyperbolic upturn in the economy, for he’ll pay a severe price if/when it reverses. He should’ve considered carefully shooting his mouth off; but, he’s too vain, full of self-acclamation, to do that. When this entire worldwide <== read that again – funeral pyre of financial and political lies comes tumbling down Trump and all who have believed in some concept of 'fair' and 'the system is sound' are in for a rude awakening. Those who've dreamed of some 'Bit*' asset included. In the end it'll be a Selco world for a long time.
each time i have been critical of trump’s decisions, a bit later i find out it was a sound decision. be patient. I think he might be doing what needs doing. if what i have been reading about his efforts, they are well planned, go back a long time, and are very well supported on the inside by “the good guys” who are fed up. Don’t expect this to be some sweeping change all pretty and quick and efficient. it is going to have to consider and deal with all of the mechanism that has been built into the system by the deep state for over a century. It has to deal with an impatient patriot population that is red pilled but doesn’t have all the info. A middle population that is fickle and easily persuaded one way or the other but for now is closer to red pilled. and then you have the total zombie retard population that the left controls. I would hope there is a plan to take over the msm via infiltration and clean out of the cia and other agencies so that better info can start getting out to the retard population. that info will basically be some sort of sedative to calm and neutralize them. At the same time providing real journalism and fact reporting. anyway, those are my musings on the subject.
MWK – I hope your points show to be valid. I’m more the pessimist, a ‘show-me’ person. I don’t believe squat until I see it with my own eyes, touch it with my hands. I’d put Thomas to shame with my level of doubt. Your points are good as the the 3 classifications of people/citizens. I’d say though that the first group of red-pilled Americans is very small – those patriots. I wish otherwise; but, again… my cussed negative mind kicks in and tells me otherwise.
It is a small number. That is always the case. Saw an interesting presentation by Jordan Peterson about the number of people in any given organization that make the thing work. the square root of the number of people in the domain do half the work.
that means, 100 employees, 10 of the them do half the work.
https://www.youtube.com/watch?v=UmUdcWk6Vfw
the good news is, it doesn’t really take a large number to get the job done. 🙂
Yepper. Talked about bubbles when he was running ” We’re in a big bubble “. Now he’s taking credit for his share. When it all falls apart, Trump will be blamed for it all.
While i dont not like Trump, he is afterall just another wealthy ego driven prick,,,
Again, i have nothing against him personally, but most of those folks are so out of touch with reality its mind boggling.
Schiff has been saying this same thing for more than 10 years, even saying the collapse is only months if not weeks away. Lots of other “experts” have been saying this since Carter was president. Sure, the economy cycles, and will eventually have a major upset, regardless who is president. When a collapse occurs it will not happen suddenly. Rather, gradually even with some intermittent recovery spikes.
Economic depressions are a political tool, nothing helps the oligarchs bring about their desired goals quite like mass desperation. As long as they are making progress there is no need for economic upheaval. Sure, it would cause a lot of misery and lawlessness, just like back in the 1930’s, but not these Mad Max scenarios of total disintegration of civilization. More likely, you would see just the opposite, extremely heavy-handed intervention and control by TPTB, and revocation of Constitutional rights.
To say eventually we will have to pay the piper is absolutely true, though redundant, it always happens. Economic laws are just as concrete as physical laws; one can only manipulate so far. Just as an airplane can temporarily defy relentless gravity, manipulation of economic laws will only function so long until irresistible forces like overwhelming debt, unlimited fiat currency, intractable ccorruption, and extreme wealth concentration to name a few force the economy back to reality.
The only question is when, it depends how inventive TPTB are and how how they intervene with their policies. As we all can see, every prediction has been nothing more then mere speculation so far.
ten years ago, the economy was about to COLLAPSE, and rightfully so. but they decided to spend almost a TRILLION dollars to “keep the tanks off the streets”(TARP)….but years later, we learned it was MANY trillions that were spent/loaned….MUCH of it to other countries….but it dint WORK! we still got insolvent STATES, CITIES, FEDJAL GUBMINT, and PEOPLE…..we are flat fukin’ busted, and BROKEN. all that money, that must be paid back(?) created a massive debt that just made things that much WORSER! what can’t be paid back, WON’T be paid back…..the only question left, is WHEN does it all go down? it will happen quickly, when it DOES….and the only thing that will be worth much is FOODstuffs, weaponstuffs, goldstuffs, cold-weatherstuffs…..STUFF, that’s what will have value….get out of the dollar, and houses, and stocks, and antiques, and ………i was given a gift over ten years ago, to be able to SEE what was about to happen. i have read so much, that sometimes i think it’s a CURSE to know what i know…..but i DO know it’s TRUTH. y’all KEEP partyin’ like it’s 1940, i’m gonna keep stackin’!
My bet is on soon, the reality is that TPTB dont like how the establishment political class is fairing, i would bet they pull some plugs soon so dems can take seats from repuglicans, desperate people like free stuff and democrats are known for giving it up
Anybody been monitoring and putting 2 and 2 together on what’s been going on in the ring of fire, lately? Volcanic explosions and large earthquakes all around it, the latest, Philippines volcano is blowing it’s top, and on the other side of the Pacific, Alaska got a 7.8 quake off the coast. Peru got a big earthquake last week, and another volcano is going off in Bali and New Guinea. Three volcanoes are active in Mexico, right now.
Sean the MSM isn’t giving the Alaska earthquake any coverage. It was big and it was reasonably shallow. (25 km). Near Kodiak. I check the USGS earthquake site everyday. There is some interesting volcanic activity lately.
who cares about that cold shithole.
Sean
I have taken notice of this since Fukushima. The magnitude and frequency along the “Ring Of Fire” fault line gets my laymen attention. There is no way with a billion or more people living along those coasts that any significant media coverage would be forthcoming. The earths geography isn’t stagnant its dynamic.
The new tax law bought Trump some time. The Republicans are blowing an opportunity for a public relations coup. At least temporarily. Almost everyone’s pension has stocks in it. Those pensions are at least temporarily better funded because of the Stock Market. Never under estimate the stupidity of the Republican Party.
american PEOPLE, you musta’ meant to say “never underestimate the stupidity of the AMERICAN PEOPLE”…..there, i fixed it for yuh.
Buttcrack, all of the above.
i hear you are working on a cure for plumber’s butt
say no to crack!
It is already in place that the fall will go for Clinton, Bush and Obama which in reality were the ones who presided for the demise of our nation.
dont forget to blame idiot NRA members for their part in voting for registering guns.
Just wait till the Chinese back their Juan with all of the gold they’ve been buying. Our dollar will tuck its tail like a scalded dog and ADIOS!
People need to be reminded, too, not to solely look at the stock market as primary indicator of a healthy & robust economy.
In their day, the Wiemar Republic, Zimbabwe and, most recently, Venezuela, each had the fastest record-breaking growing stock markets in the entire world as they destroyed their currencies and plunged into record-breaking inflation.
Stock markets are a receipt of total production of everything ever created, and future production created, which is also valued by the total amount of money created worldwide to represent it — which is also the total world debt as all money is created into existence as a debt note. World debt will move on the chart in correlation with the stock markets prices. The trick is to get greater number of new people into debt in order to create growth in the entire debt money supply system.
No crash in 2016, 2017, maybe not even 2018. Don’t matter. You have more time to prepare.
I agree with Chris Martenson. Adversity and uncertainty will be the new norm. Sleep lightly.
I’ll put my money on the stock market up 50% from 2017 to 2024 should Trump win again. Sure you’ll still get 10% corrections, albeit temporary, then forgotten by new all time highs. Markets will set new all time highs along with all time highs in US and world debt. Face it there is only one direction when debt and the creation of new debt is all there is. The only killer is the future disruption of oil, then the pace of new world debt will increase exponentially FASTER and then see markets doubling in 2 years, then 1 year, then 4 months etc… Until the day no one wants any currency for oil, and you’ll have to walk everywhere and burn everything you can to stay warm.
bert, you drank the koolaid.
A broken clock is right twice a day. No one can predict when this bubble will burst. Keep in mind, the $850 billion Dubya, Cheney, and Paulson stole from the American people in 2008 has never been repaid back to us. Also, if the debt is no longer going to be serviceable, who will collect it? The fat cats and Wall Street Banksters do not have enough cops or soldiers to go door-to-door, assuming they will even show up for duty.
The logical solution, which would keep a lot of politicians and Banksters from being the guests of honor at necktie parties would be a Jubilee Year. Debt forgiveness. Then, start from ground zero with honest money based on specie.
If you folks want a preview of coming attractions, go to You Tube. Look up FIVE REASONS WHY AMERICAN RIOTS WILL BE THE WORST IN THE WORLD. It runs 9:56. Click on the one with the Ayn Rand logo and the yellow art deco back round. Sit back and enjoy.
the impending doom is always just around the corner. Been hearing this, waiting for this for over 25yrs…Y2K, UN invasion, Race war, Military take over, ebola, grid down, pigmy elves killing off all of the virgins..you name it, its always “coming soon”..but guess what, it never has arrived in mass for a total collaps. Worrying about this or that coming from so called experts predicting the end of the world as we know it situation is not productive..and really by now, its all a broken record.
Get preps in place, be solid in your preparedness and then let what happens happen, you cant stop any of it anyway….
The world is waiting for the USA to implode. We here up north want the wall up here, so people stay south. A whole nation of sheeple and what is needed is an all our revolution for the people to take back the country.
Anonymous, I fought (as I suspect you did) in the pygmy elf conflagrations…it was an experience I would not soon repeat.
The other thing to look at is the DJI’s. If you look through the P/E ratios of these big stocks, it is easy to see just how overpriced they are compared to their earnings. At a minimum a correction is needed to get to normalcy, but such a chain reaction would result and that isn’t including panic selling.
“[Hjalmar Schacht] served as the Currency Commissioner and President of the Reichsbank under the Weimar Republic. He was a fierce critic of his country’s post-World War I reparation obligations.
served in Adolf Hitler’s government as President of the National Bank (Reichsbank) 1933–1939 and became Minister of Economics (August 1934 – November 1937)….
While Schacht was for a time feted for his role in the German “economic miracle,” he opposed Hitler’s policy of German re-armament insofar as it violated the Treaty of Versailles…
In 1953, he founded a private banking house in Düsseldorf. He also advised developing countries on economic development.
I would like to suggest that y’all look at a Mormon psychic named John Koyle. Koyle said that there would be a 4 year famine in the US:
1. Republican Pres in office for 2 years?, after a long period of Democrat rule.
2. Stock market crashes in fall of the year following an unusually cold winter. Stock market crashes on US Govt holiday, on the friday, where holiday is on long weekend. Could be Friday, October 5, 2018.
3. Stock market crash occurs with US dollar collapse. Collapse leads to hyperinflation, and all economic activity ceases. No fuel available, no food in stores.
4. Stock crash happens in second year of 4 year famine. Only irrigation farming produces in Second year (this year?). Nothing produced in 3 rd year. famine is so bad, very little seed available in 4th year, farm output meager. Total societal collapse – brother against brother, father against son.
5. Huge die-off globally. Famine also caused by a problem with the sun. In the third year, the sun releases a type of radiation that burns all crops.