According to Peter Schiff, the chief global strategist at Euro Pacific Capital, it was a “huge mistake” for the Federal Reserve to cut interest rates last month. Schiff says there is no way for the Federal Reserve to stops the United States from going into a recession.
“They never should have taken rates to zero in 2008 and held them there for 7 years,” the veteran economic analyst told RT. “Zero interest rates and quantitative easing have created problems in our economy that will take generations to fix. However, the healing will never get underway if the Fed goes right back to zero (which is where they are headed).”
According to Schiff, it’s impossible to build a viable economy on the back of artificially low interest rates. “All it accomplishes it to push up asset prices, creating bubbles and malinvestments that hurt the economy. Relying on low interest rates for growth makes it certain that recessions will ensue when monetary policy tightens,” he added.
Runaway government debt and the Trump tariffs provided the final push to tip us back toward an inevitable recession, Schiff said. He added: “the Fed is not causing the recession; they are just unable to delay it any longer.” Unfortunately, if interest rates are “allowed” to rise organically to levels that reflect a healthy economy, the interest payments on government debt will sink the government and that’s exactly why President Donald Trump is desperate for artificially low interest rates.
Peter Schiff: A “Great Recession” Will Hit Jeopardizing Trump’s Reelection Efforts
Schiff has commented on a coming recession often, saying if it hits before the 2020 election, Trump will have no chance of winning. Schiff also said that “We’re Not Borrowing Ourselves Rich, We’re Borrowing Ourselves BROKE!” Meaning he sees a problem in the debt accumulation among the average American household. It now takes a lot of debt to stay in the middle class, and the political class isn’t setting a good example by being good with the money they steal from everyone else.
Schiff puts the GDP numbers into perspective, and considering the debt load the U.S. economy is burdened with, the outlook isn’t all that rosy. And of course, it’s not just government debt. Household debt is also at record levels and as Schiff says, “We’re not richer because of this economic growth.”
“So, we had to add a lot more debt in 2018 to buy not as much growth as a much smaller amount of debt in 2005. So, the takeaway from that is this is unsustainable because the growth came at a heavy cost. We had to increase the amount of debt that we had by a lot more than the percentage that the economy grew.”
“If your debt is growing faster than your economy, then you’re not getting richer. You’re getting poorer. You would have been better off without the debt and without the growth … We’re borrowing ourselves into poverty. We’re not borrowing ourselves rich. We’re borrowing ourselves broke.“-Peter Schiff, via Seeking Alpha
In his book, Crash Proof 2.0: How to Profit From the Economic Collapse, Peter Schiff discusses how to profit from the next economic recession. The economic and monetary disaster which seasoned prognosticator Peter Schiff predicted is no longer hypothetical-it is here today. And nobody understands what to do in this situation better than the man who saw it coming. For more than a decade, Schiff has not only observed the economy but also helped his clients restructure their portfolios to reflect his outlook. What he sees today is a nation facing an economic storm brought on by growing federal, personal, and corporate debt; too little savings; and a declining dollar.
I knew Peeder Schitt was next.
Bring out your usual lineup of ass clones.
New highs by xmas.
The DOW will track the national debt, which is headed to double again under Trump. Can you say DOW at 40,000.
A second Trump administration will lower the boom on spending, which is what will crash the market.
Can we have more gun banning articles please. I get pumped up more on those. There’s alot underfoot among the democrats and their schemes to ban guns and we need to sound off on those. It gets our blood pumping. A short schtick from schiff shafts several saps sadly but gun grabbers get gruffy guys going.
Peter thinks the FED is trying to stop a recession, they are in fact trying to game/time a recession to overthrow the 2020 election. It not finance, it’s politics.
Anyone who supports the FED, is either an idiot or a shill for the deep state.
As for mr doom and gloom Schiff, the last two years before a recession are the place the most profits are made.
We are in a war, and money is just another weapon. Schiff thinks in terms of cycles, he ignores perhaps on purpose the political war of ideologies.
Isn’t Peter Adam’s brother?
“Zero interest rates and quantitative easing have created problems in our economy that will take generations to fix.”
How, oh, how can you fix the errant math problem, on the piece of paper. Whatever can we do about a formal, bureaucratic inconvenience.
Mac, you do realize that this site is going to hell in a hand basket with all the bullshit political doom and gloom. How about give it some thought and provide some decent prep advice. Without the hysterics give some alternatives as to what could possibly happen in our future. Personally I am way more concerned about a bunch of idiots being president next year and what they will do to our country than much of your writing about recessions and such.
Made several comments on several articles here the last 4 days. Now I remember why to left this site, they are psyops, controlling the narratives, comments, and looking to honey pot their targets of elimination when shtf. This site is itself govt run psyops and most commenters here are operatives. Same names as 5 years ago. I will leave now and never return. My final word to you treasonous bastards is the fight you are looking for will be much more epic than your worst nightmares from what i can tell. And it wont end like you think or hope.