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

Peter Schiff: The Party Is Over (Video)

  by    0   0

We’ve been talking a lot about the rising levels of debt – both government and household. Set in an environment of rising interest rates, this is a huge problem very few people seem concerned about.

We’ve been enjoying a big party and it’s about to come to an abrupt end.

When it comes to the federal debt, the big question is who is going to buy all of the bonds the government will need to sell to finance the spending?

Of course, rising federal debt is nothing new. Pres. Obama did his share of spending. But in an interview with Stefanie Kammerman during the Orlando Money Show, Peter Schiff pointed out a troubling difference between then and now.

When we got the tax cuts passed, that is a huge negative for the bond market because it means much bigger deficits, because now the government has to borrow the money it used to collect in taxes.  But now they just passed this new budget resolution, which is a massive increase in spending. The budget deficits now, under Trump, are actually going to be bigger than they were under Obama when we were in the worst recession since the Great Depression. This is unprecedented borrowing. And when Obama was running these big deficits, the Fed was monetizing them. They were doing a trillion dollars a year of QE. Now, they’re not doing any. So, that means we’re going to have a massive increase in interest rates. That means stocks collapse. That means we’re going into a recession. Because the only thing that has been propping up the economy and the stock market has been artificially low interest rates – extremely, unprecedentedly low interest rates.”

On top of that, levels of personal debt are also spiraling upward.

Everybody is loaded up with debt. We have record high student loans, record high credit card debt, record high automobile debt. The savings rate is at a 10-year low. Everybody is loaded up with debt, and the only reason that we can afford it is because the rates are so low. Well, they’re about to go a lot higher and the party is over.”

Peter reiterated what he’s said in past interviews – he doesn’t think the Fed is going to stay on this path. It will ultimately try to save the stock market and sacrifice the dollar.

I think it’s only a matter of time before the Fed cancels the rate hikes, fesses up to rate cuts and launches QE4. But the problem is it ain’t gonna work this time. It’s going to blow up in their face because that is basically the nail in the dollars coffin.”

Peter said this is going to sen the price of gold through the roof.

Get Peter Schiff’s most important Gold headlines once per week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!

 

Photo by Mikhail Kryshen.


Related Posts

Peter Schiff: Gold is the Canary in the Economic Coal Mine

This weekend, Todd Sachs interviewed Peter on the state of the economy. They discuss the parallels between now and the 2007-2008 housing crisis, the role of economic sentiment in voters’ opinions, and why foreign central banks are losing faith in the dollar.

READ MORE →

Gold Hits New All-Time Record High

Gold hit a new all-time nominal high, surpassing the previous record set in December of the previous year. The precious metal’s price reached approximately $2,140, indicating a robust and continuing interest in gold as a safe-haven asset, despite a rather peculiar lack of fanfare from the media and retail investors. This latest peak in gold […]

READ MORE →

New Peter Schiff Video: Inflation Rises, Bitcoin ETFs, and the Final Gold Shakeout

Peter released a brief video addressing the looming resurgence of inflation. Ironically, on the back of disappointing inflation numbers, gold witnessed a dip below $2000 on Tuesday due to higher-than-expected CPI data.

READ MORE →

Peter Schiff: A Buying Opportunity as Gold Pulls Back from Record High (Video)

Gold surged to a new record high of $2135 early Sunday morning before pulling back sharply Monday. In this video, Peter Schiff explains why this is a buying opportunity. After setting the record, gold quickly sold off and consolidated, dropping over $100 back to around $2,020. Some people see the quick selloff as a bearish […]

READ MORE →

Marc Faber: Inflation Is Here to Stay

During a recent interview at the 2023 Precious Metals Summit Zurich event, Doom, Boom & Gloom Report publisher Marc Faber says now is the time to buy gold, silver and platinum because inflation is here to stay.

READ MORE →

Comments are closed.

Call Now