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 Gold Videocast: The Lull Before the Storm

Over the last several months, gold and silver have faced strong tailwinds due to market expectations that the Fed would tighten monetary policy sooner rather than later to fight price inflation. But after April’s hotter than expected CPI, that sentiment seems to have shifted and the markets are acting the way you would expect in […]


Peter Schiff and Ben Shapiro: The Government Is Wrecking the Economy

In many ways, it appears the economy is beginning to recover from the shocks of the coronavirus pandemic. GDP growth is way up. The stock market is soaring.  A lot of people are optimistic. But during an appearance on the Ben Shapiro Show, Peter Schiff said this isn’t a real recovery, and he explains how […]


Peter Schiff: The Surplus of Printed Dollars Is Driving Price Inflation

The Consumer Price Index came in much hotter than expected last week. The mainstream chalks rising prices to supply chain and production issues caused by the pandemic. But in a recent interview on NTD News, Peter Schiff says there’s more to it than that. Prices are rising because a surplus of printed dollars is bidding […]


Peter Schiff: Politicians Are Nothing But Actors

When Peter Schiff appeared on Joe Rogan’s show, he made the case that the Federal Reserve and Congress are the real problems facing America. The central bank and the federal government cripple the economy, destroy opportunity, and generally make life more difficult for the average American. But why? Why would people who claim to be […]


Peter Schiff and Tucker Carlson: The Financial Crisis Will Be Worse Than the Pandemic

Consumer Price Index (CPI) data for April came in much hotter than expected. Year-on-year, inflation is up 4.2%. The big number even prompted Federal Reserve Vice Chairman Richard Clarida to say, “We were surprised by higher than expected inflation data.” Peter Schiff appeared on Tucker Carlson’s show to talk about the consequences of more printed money […]


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