Contact us
CALL US NOW 1-888-GOLD-160

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: Biden Putting America at Risk to Prop Up His Own Image

Even as the August inflation data was coming out higher than expected, President Joe Biden was bragging about his “Inflation Reduction Act.” Peter Schiff appeared on NewsMax and argued that the president is putting Americans at risk just so he can improve his image as we approach election time.


Peter Schiff: The Fed Is Spitting into the Wind

The CPI for August came in hotter than expected, ratcheting up anticipation of another big Federal Reserve interest rate hike at the September FOMC meeting. Peter Schiff appeared on the Claman Countdown on Fox News and explained why these rate hikes are too little too late. In fact, the Fed is basically spitting into the […]


Peter Schiff: Student Loan Forgiveness Is Pure Inflation

Last week, President Joe Biden announced a student loan forgiveness scheme. Peter Schiff appeared on NewsMax Real America with Dan Ball to talk about the cost of forgiving student debt and the growing recession. Peter said that despite all of the claims to the contrary, this is just going to add to the inflation problem.


Peter Schiff: Joe Biden’s Unwarranted Inflation Victory Lap

Peter Schiff appeared on the Newsmax Saturday Report along with former Rep. Peter King (R-NY) to talk about President Joe Biden’s unwarranted inflation victory lap. The CPI for July came in slightly cooler than June’s sizzling 9.1%. But even at 8.5%, CPI remains near 40-year highs. But Biden focused on the unchanged month-on-month CPI to […]


Peter Schiff: The Worst of Both Worlds — Inflation and Recession

The CPI cooled in July. The White House and others in the mainstream continue to insist there is no recession. Is everything looking up? Peter Schiff was on Fox Business with Liz Claman, Kenny Polcari (Slatestone Wealth Peak Market Strategist), and Teddy Weisberg (Seaport Securities) to discuss the Fed’s attempt to fight the inflation it […]


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