Economist Peter Schiff predicts that the Federal Reserve will eventually throw up the inflation fight and face “something more to fear: a complete economic collapse, another financial crisis, a sovereign debt crisis.” He predicts that the Fed will face a He stressed that “months of declining inflation are in the review mirror” and that now “we will see accelerating inflation.”
Peter Schiff discusses the possibility of an economic collapse.
Economist and gold bug Peter Schiff shared some dire warnings about where the U.S. economy is headed and the consequences of the Federal Reserve’s fight against inflation in an interview with Greg Hunter on the USAWatchdog program, published Saturday.
Schiff cited recent economic data, including the Personal Consumption Expenditure Price Index, which rose 0.6% in January, and said ‘We’ve had months of declining inflation in the review mirror. And now we are seeing an acceleration in inflation as measured by these government indices.”
Arguing that the Federal Reserve’s inflation measures have been completely ineffective, this economist opined.
I don’t think the Fed is serious about fighting inflation, but if they are, they will have to fight it much harder than they have. Interest rates need to be raised much more than anyone thinks.
But Schiff points out that higher interest rates alone will not be enough. We also need a major cutback in consumer credit,” he said. Lending standards need to rise so that consumers can’t keep spending,” he explained. People are spending money. People are spending money and increasing their credit card debt. This is inflation … consumers need to stop spending.” This economist stressed that people need to work, produce, and save – not spend.
In addition, Schiff stressed that the federal government needs to control the spending problem. He elaborated.
we need to cut government spending drastically. The government cannot give people money to spend. Because that is what has led to these skyrocketing prices. And ultimately we’re going to get the Fed to go back to quantitative easing.
Schiff predicted that eventually the Fed will throw in the towel on fighting inflation, adding.
because it will be fighting what it fears more, which is a complete economic collapse, another financial crisis, or a sovereign debt crisis.
He also warned that the Fed might even force the U.S. government to consider legal cuts to Social Security and Medicare.” . as well as cutting them illegally by causing inflation.”
This economist has previously warned that the Fed’s actions could trigger a financial crisis and a recession far more severe than central banks realize. He also recently predicted that inflation would be much worse and the U.S. dollar would crash.
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