Economist and money bug Peter Schiff usually has a lot to say, but last week Schiff explained in an interview that the US will face a financial crisis worse than the 2008 “Great Recession” Schiff said the U.S. will face a financial crisis worse than the 2008 “Great Recession. Schiff explained that the U.S. is far more indebted than it was then, and argued that a U.S. recession would be “a much bigger crisis when the defaults start.”
The chief market strategist at Euro Pacific Asset Management said that the drop in US inflation is “temporary”
While Peter Schiff detailed the liquidation of Euro Pacific Bank, the economist spoke with Kitco News anchor and producer David Lynn about the US economy. The day before, Schiff explained that while inflation has seemingly cooled, he does not believe this trend will last. Schiffsaid on Twitter, “Paradoxically, investors are selling dollars and buying gold on the lower than expected rise in July CPI because they think the Fed will adopt a less aggressive policy. They are right to sell dollars and buy gold, but for the wrong reasons.” The drop in inflation is temporary.”
U.S. productivity fell 4.6% in the second quarter, following a 7.4% decline in the first quarter. On a year-over-year basis, productivity fell 2.5%, the largest decline since the series began in 1948. The decline in productivity has forced real wages to fall and consumer prices to rise. The government created#24} inflation has exacerbated both problems.
while speaking on Kitco Newsbroadcast. Schiff went on to explain in more detail why he thinks the U.S. recession will be uglier than the 2008 recession. Schiff says that if the Federal Reserve keeps raising interest rates, a financial crisis is inevitable. 2008 was about bad loans,” the gold bug and economist stressed. ‘It was about people borrowing money and not being able to pay it back. The collateral for the loans was real estate, which was no good because prices had fallen. They have much more debt now than they did in 2008. So when the defaults start, it will be a much bigger crisis.”
But this time, Schiff points out, American financial giants will not be bailed out. This economist remarked.
Unless inflation is too high and the Fed is fighting inflation, when they fail it will be much worse, no TARP 2.0. All these banks will have to fail.
Schiff said U.S. inflation will continue “for years and years and probably the rest of this decade”
Schiff was speaking after the U.S. Bureau of Labor Statistics’ Consumer Price Index (CPI) rose 8.5% in July from a year earlier; following the CPI report, U.S. President Joe Biden drew heavy criticism for saying that inflation in the U.S. economy was at 0% in July. Biden’s comments followed an attempt by the U.S. government to redefine the technical definition of the word “recession.” If you believe the official CPI, prices, which are already very high, did not get higher during the month of July,” Schiff told the Kitco show host. Schiff added:
Consumers have not been reassured that prices will actually come down; they’re definitely going to be higher than 9.1%. This inflation problem is not over yet. It will continue to be a problem for years and years, perhaps for the rest of this decade and even beyond.
Schiff’s comments on the CPI follow a post on schiffgold.com the same day, which claimed that the Bureau of Labor Statistics’ CPI calculation uses a government formulathat understates actual price increases. Additionally, statistics from shadowstats.com’s alternative inflation chart show that inflation is much higher than officially reported.
Even with multiple jobs, workers can’t keep up.60} #inflation Consumer credit surged $40.1 billion in June, far more than expected; credit card debt surged at a 16% annual rate, as consumers try to afford more expensive necessities have gone deeper into debt.
– Peter Schiff (@PeterSchiff) . August 5, 2022– Peter Schiff (@PeterSchiff) {63
An index from 68} The Truflation Indexalso shows much higher inflation than the CPI, at 9.41% in the August 14 data. In an interview with Lin, Schiff said he expects a “major financial crisis” and “major problems for the U.S. dollar.” He expects the value of gold and silver to skyrocket if the dollar collapses.
Schiff concludes, “The reason the dollar has rallied so much in this early stage of major inflation is that investors are delusional about the Fed’s ability to control inflation, and they have put inflation back at 2%.
“Under these circumstances, investors are under the delusion that the Fed can rein in inflation and bring it back to 2%.
What do you think of Peter Schiff’s opinions and economic forecasts? Do you think Mr. Schiff’s predictions are correct or do you think they are off? Let us know what you think about this subject in the comments section below.
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