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

The US Is a “Fiscal Titanic” with the Fed as Captain (Video)

  by    1   0

Just hours before Congress passed a funding bill last night, David Stockman appeared on CNBC to explain why the United States needs to experience a dramatic government shutdown. He argues, like Peter Schiff, that US debt is a massive bubble waiting to burst. Though one of the CNBC anchors agreed with him, another argued that the US debt load is very manageable. They also disputed his claim that the Federal Reserve is the main culprit behind America’s “fiscal paralysis.”

[The debt load] is not manageable at all, because thanks to Yellen and her merry band of money printers, we are not paying the true cost of the debt. This year, it’s $230 billion on $13 trillion of public [debt]. That’s 1.75%. That’s ridiculous. When it normalizes – which it will someday – we’ll be paying $400-500 billion more at a minimum. So I blame the Fed. The Fed is the number one culprit in this whole fiscal paralysis, because it’s told all the politicians, ‘You can kick the can, you can dodge the bullet.’”

WhyBuyGoldNowBanner.070815.590

Highlights from the interview:

“We’re going to have a shutdown sooner or later. We’re on the fiscal Titanic, and we’re going to hit something hard and immoveable one of these days. We’re in month 75 of this so-called recovery. Congress has squandered the entire time, done nothing about the long-run fiscal outlook. If anything, they’ve basically been trying to find ways to get out from under the caps they put on themselves in 2011. But nobody outlawed the business cycle. There will be another recession. The average cycle is 60 months, the longest is 100. We’re overdue, and it may be coming sooner than people think. When it happens, we’re back in trillion dollar deficit land. We’re heading towards a doubling of the national debt, which is huge already. And we’ll be in an environment in which it will be impossible to cope with it…

“Today, [a government shutdown] is a farce. We have 2.4 million federal employees. 85% of them will go back to work – all the armed forces, anybody having anything to do with life or property or health or safety or anything else people can imagine. The TSA will keep groping you. The NSA will keep spying on you. The DEA will keep arresting you…

“We have a dysfunctional, non-functional government, waiting for something to hit the wall. Everybody, unfortunately, on Wall Street says, ‘Oh no, let’s not have a government shutdown. Keep the game going, because we like the bubble we’re in.’ Here’s the news flash: we’re in a bubble and it’s going to break…

“[The debt load] is not manageable at all, because thanks to Yellen and her merry band of money printers, we are not paying the true cost of the debt. This year, it’s $230 billion on $13 trillion of public [debt]. That’s 1.75%. That’s ridiculous. When it normalizes – which it will someday – we’ll be paying $400-500 billion more at a minimum. So I blame the Fed. The Fed is the number one culprit in this whole fiscal paralysis, because it’s told all the politicians, ‘You can kick the can, you can dodge the bullet.’ ….”

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

Why Is the Fed Desperate to Hide Inflation?

For months, Federal Reserve Chairman Jerome Powell has insisted that inflation is “transitory.” Instead of laying out a plan to taper quantitative easing, Powell used his Jackson Hole speech to double down on that narrative. Looking at the bigger picture, the US government has created a CPI calculation that intentionally understates rising prices. This raises […]

READ MORE →

Peter Schiff: Inflation Will Win in a Knockout!

A lot of investors are disappointed in gold. After all, many buy gold because of inflation. Even with rapidly rising prices, the yellow metal hasn’t delivered as you might expect. During his virtual speech for the Money Show, Peter Schiff explains exactly what is going on. He said in the end, gold will be vindicated […]

READ MORE →

Q&A With Peter Schiff

Peter Schiff spent an hour and a half answering questions during a live chat on Instagram.

READ MORE →

The Fed Is Failing; Stagflation Looms

The August jobs numbers came in much lower than expected, a kick in the teeth for those touting the “improving economy” narrative. Meanwhile, personal incomes continue to grow but rising prices are eating up that growth and then some. The economic data suggest the Fed’s plan is failing and stagflation looms on the horizon.

READ MORE →

Peter Schiff: Jerome Powell Rewrites Inflation History

During his Jackson Hole speech, Federal Reserve Chairman Jerome Powell rewrote the history of inflation. In this clip from his podcast, Peter Schiff unravels the yarn that Powell spun. In a nutshell, Powell claimed prior Fed policymakers mistakenly moved too fast to address inflation that turned out to be transitory, and he said he didn’t […]

READ MORE →

One thought on “The US Is a “Fiscal Titanic” with the Fed as Captain (Video)

  1. Tzer says:

    As I see it,USA is already United States of AmeriKa. Since 2008,all the money has been handed out anew by FED.Unfortunately,all the money was not spread evenly by the HELICOPTER set by FED.The umbrellad of the poor were too small to get it.

    That’s the reason of CONTRACTION.

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