Economist Peter Schiff warned of the “biggest economic disaster” in US history. He stressed that we are on the verge of a financial crisis and “it will be much bigger than the last one.” He further stated that the U.S. dollar is being debased to finance bank bailouts.
Peter Schiff foresees “the greatest economic disaster in U.S. history”
Economist and gold bug Peter Schiff shared his warnings about the U.S. economy, banking crisis, and inflation on NTD News on Monday. On Federal Reserve Chairman Jerome Powell’s insistence that the U.S. banking system is healthy and resilient, Schiff exclaimed: “It’s not healthy at all. It is a house of cards that is beginning to collapse.”
Schiff explained: “Thanks to the mistakes the Fed made since the 2008 financial crisis, we now have a much bigger bubble, and the Fed caused the bubble that led to the 2008 financial crisis, and then inflated an even bigger bubble to try to write off its mistakes.” This led to a kick in the road so that they would not have to deal with the full consequences of all their mistakes. And economists opine:
Of course, we made even bigger mistakes, and now the U.S. economy is on the verge of the biggest economic crisis in history.
Schiff sees the recent failures of major banks, such as Silicon Valley Bank and Signature Bank, as the beginning of the next financial crisis.” This is exactly what is happening right now. It’s a banking crisis, and banks are financial institutions, and I think people are hesitant to call it a financial crisis because they don’t want to invoke the memory of 2008, they don’t want to compare. They don’t want to admit it,” he opined, noting:
They deny all the early signs of a major financial crisis. But make no mistake, we are one step closer to it. And it will be much bigger than the last time.
According to economists, banks are ill-equipped to deal with the combination of a significant recession and a sharp rise in inflation.”
“In other words, if high inflation and a recession occur at the same time, banks will fail,” he said.
If inflation lowers the value of the U.S. dollar, people will try to withdraw money from the banks because they will not be able to offer interest rates that can offset their losses, Schiff explained, warning:
Of course, if people try to withdraw money from the banks, there There is no money there. So the only way for people to get money is for the Fed to print money. But if the Fed prints money, it will lose more of its value. In other words, it accelerates the momentum of spiraling inflation… The dollar is being debased to finance bank bailouts.
Noting that the Federal Reserve has increased its balance sheet by nearly $400 billion in two weeks, Schiff warned: “This is inflation. This will cause the loss of value of all the money already in circulation. Not because we are taxpayers, but because Americans, the owners and earners of U.S. dollars, will pay. The value of everyone’s wages will go down because of the bank bailout,” he said. The moneybags pointed out:
These bailouts are putting everyone’s bank deposits at risk, even the solvent banks.
“What is at risk now is inflation. So it doesn’t matter if the banks fail. You are still going to lose. If the bank fails, you are still going to lose your money. But right now, the government is not letting the banks fail, so everyone who has a bank account will lose purchasing power,” concluded Schiff.
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