Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

What If Oil Is Just the First of Many Bubbles? (Video)

  by    0   0

Peter Schiff appeared on Fox Business to explain why the bursting of the oil sector bubble could be the first of many collapsing bubbles that will push the United States economy back into recession.

Highlights from Peter’s interview:

“Long term, of course [lower oil prices are a good thing]… Contrary to what the central bankers and the economists are telling us, it’s always a good thing when consumer prices fall. Even Janet Yellen acknowledged the benefit of lower gas prices. Well, the same thing applies to all prices. But here’s the problem… If the Fed really does raise interest rates (and I don’t really think that they’re going to)… and the oil price stays at these levels or goes lower – as previous guests just mentioned, maybe $40 – all of the activity in the oil sector for the past several years is going to turn out to have been a bubble. And the lay-offs that we’re going to get in the short run, the credit losses, and the capital expending declines will be significant enough – in the short run – to push the US economy back into recession. I think it’s a bigger impact than the bursting of the dot-come bubble, and that brought us into a recession back in 2001…

“Most of the good jobs that have been created over the last few years were created in that [oil] sector. So these jobs are now at risk. I think this is somewhere between the dot-com and the housing bubble. I think it’s bigger than dot-com, smaller than housing, but there were positive effects from falling home prices. It made it cheaper for people to buy houses. But there was a lot of debt that was accumulated and a lot of lay-offs in the sector. So we’re looking at the same possibilities in the oil sector. But here’s a bigger question to ponder. If it turns out that oil was just a bubble created by cheap money, what about the stock market? What about the housing market? What about the bond market? What if they’re all bubbles? What if the oil bubble is just the first of many bubbles that are going to pop? We have much bigger problems there…

“I think the bigger problem [than a surplus] is where is the global demand? I think the demand is contracting. It’s because economies are slowing down, and I think this is going to include the United States…

“If I were bullish, if I thought we had a legitimate recovery, which I do not, I would still have to be worried about that recovery being derailed by a collapse in the oil sector. Because that has been the brightest spot in the US economy. If we extinguish that light, what is going to take its place? Where are we going to get the high-paying jobs to replace the jobs that we’re losing in the oil sector?”

Get Peter Schiff’s latest gold market analysis – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning more about physical gold and silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

Peter Schiff: The Debt Ceiling Is Really a Debt Floor

We have a temporary truce in the debt ceiling fight. On Thursday, President Biden signed a bill increasing the federal debt limit by $480 billion. But this isn’t an end to the debt ceiling fight. Congress just kicked the can down the road. The increase is only expected to keep the US government solvent until […]

READ MORE →

Peter Schiff: Stock Up Now! Inflation Could Get Very Ugly

The price of pretty much everything is rising precipitously. The CPI for September came in above expectations with a month-on-month increase of 0.4%. Peter Schiff appeared on Unfiltered with Dan Bongino to talk about inflation in Joe Biden’s America. Peter said you should stock up now because things could get ugly really quickly. Bongino pointed […]

READ MORE →

Peter Schiff: This Is a Record We Don’t Want to Break

A surge of imported services drove the trade deficit to a new record in August. Peter Schiff appeared on NTD News to talk about the trade imbalance. He said it is not a sign of a strong economy and not the kind of records we want to be breaking.

READ MORE →

Peter Schiff Debates Two Socialists on the Debt Ceiling and the Economy

The fake debt ceiling fight rages on. Last week, the US Senate agreed to a small increase in the borrowing limit, but it only kicked the can down the road a couple of months. The $480 billion increase raises the debt limit to $28.9 trillion, but that’s only going to last until Dec. 3. Peter […]

READ MORE →

Peter Schiff: Government Serves Grade-A B.S. on Inflation

Both the Federal Reserve and the Biden administration continue to insist inflation is transitory. And they are also trying to shift the blame for rising prices so they avoid any responsibility. In this clip from his podcast, Peter Schiff explains why the government inflation narrative is Grade-A B.S.!

READ MORE →

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Call Now