Economic analyst Peter Schiff is not mincing words when it comes to the state of the United States economy. In fact, he isn’t wrong in the least when he says that this is the weakest manufacturing economy since the Great Recession of a decade ago.
The Institute for Supply Management said early in the day that its index of national factory activity dropped to 49.1, compared with a reading of 51.1 estimated by analysts polled by Reuters. “If anything the U.S. manufacturing data signals that the new tariffs couldn’t come at a worse time. It’s bad news on top of bad news. That’s why investors are so focused on negotiations” said Alec Young, managing director of global markets research at FTSE Russell based in New York.
And Euro Pacific Capital CEO, Peter Schiff agrees.
“This is the weakest manufacturing economy we’ve had in 10 years, basically since the tail-end of the Great Recession. So, for all the talk from Donald Trump about how great this economy is, how it’s the greatest economy ever, it’s the weakest manufacturing economy since the Great Recession. It’s weaker than it was pretty much at any point during the Obama presidency. And according to Trump, Obama was a disaster for the economy; he was a disaster for manufacturing. Well, maybe he was right, but Trump has proved to be an even bigger disaster than Obama.” –Peter Schiff, via Schiff Gold
Peter said that the only thing holding up the U.S. economy is a debt-financed consumption binge by American consumers and the US government. Basically, Americans are driving their economy with money they don’t have.
How much longer can people keep spending borrowed money that they don’t have and they can’t repay? And how much longer are companies going to keep retaining their workers when a recession is staring them in the face?” –Peter Schiff, via Schiff Gold
— Peter Schiff (@PeterSchiff) September 4, 2019
Schiff also said that the dollar isn’t as strong now as people think either. It’s just stronger than the other fiat currencies out there. Gold and silver have been surging, and that should tell us something about the dollar. For all the hype about the strong greenback, the dollar index has increased by about 1% since May. To put that into perspective, silver is up by almost 30%.
“The dollar is not really strong. It’s not quite as weak as all the other fiat currencies, but it is weak. Gold and silver’s strength is basically showing you just how weak the US dollar is. It’s just that that weakness is not being reflected in the foreign exchange markets when all the other currencies are also weak. But the days where the dollar is the least weak are going to come to an end.” –Peter Schiff, via Schiff Gold
A weak dollar is all a part of this phony economic recovery the Federal Reserve created through manipulation schemes and money printing. This artificial recovery proves the government and central banks meddling in the free market will cause a recession that will be unlike anything in history.
“The more the Fed has to interfere with the free market, the more the Fed has to distort the free market by artificially lowering interest rates, the more mistakes that we make, the more screwed up the economy gets, which means the more severe the bust when the market tries to correct all the mistake that the government created and the Fed created.” –Peter Schiff, via Schiff Gold
Peter Schiff is the author of Crash Proof 2.0: How to Profit From the Economic Collapse. 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.