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

Peter Schiff: There’s No Way Out and It’s Political Disaster for Trump

  by    0   2

Peter Schiff appeared on Fox Business After the Bell last week after the yield curve inverted and the Dow dove 800 points. Peter said the looming economic disaster for the US will turn into a political disaster for Pres. Trump.

Peter started out the interview asserting that everything the Federal Reserve has done since the 2008 financial crisis was a mistake.

All they did was succeed in making all the problems that caused that crisis worse. Now, they covered it up by inflating an even bigger bubble than the one that popped in ’08. But by trying to normalize interest rates, by trying to shrink their balance sheet, they pricked that bubble and now we’re going to complete the economic crisis that they interrupted in 2008. Except the back half is going to be much worse than the front half.”

Peter reiterated that we are heading toward a recession and that it will be worse than 2008. He said the Fed is going to take interest rates back to zero. They’re going to do QE again. And it’s going to be even bigger than QE1, QE2 and QE3 combined.

But it’s not going to work. The Fed is done inflating asset bubbles. All the inflation is going to go to the supermarket and the gas station. It’s not going to go into the stock market. The dollar is going to go through the floor to take the bond market with it. And the next crisis is not subprime mortgages. It’s going to be in the Treasury markets. It’s going to be a sovereign debt and a currency crisis, and this is going to be an inflationary recession. There’s no way out and it’s political disaster for Trump because the recession is going to start before he finishes this term, which means he won’t have a second term.”

Peter said the Fed’s inability to normalize rates was a huge warning sign that the mainstream doesn’t really understand yet. The Fed is going to slash rates more than people think and that is going to unleash significant price inflation. When that happens, people will flee from the dollar.

Once the dollar starts to fall, that’s going to push consumer prices up even more.”

So, how does Peter explain the fact that we haven’t seen significant price inflation yet, despite so many predictions since ’08 that it’s coming?

A lot of the inflation that the Fed created originally showed up in asset prices – stocks, real estate, bonds, other things like that. But that inflation is going to move from asset prices to goods prices, especially as confidence in the dollar and the US economy is lost, and when the markets start pricing in a Trump loss. Because right now everybody thinks a Trump victory is a sure thing. Just like nobody believed he could win in 2016, everybody thinks he can’t lose in 2020.”

Peter reiterated that the reason he thinks Trump is going to lose is because the recession is going to take hold before the election and people are going to blame him.

The Fed bought Bush a second term after the dot-com bubble popped by successfully inflating a housing bubble. But that bubble popped before Bush got out of Dodge and that meant McCain had no chance and we elected Obama. Well, this time, the Fed is not going to be able to inflate another bubble to save Trump. It’s going to blow up in his first term. And the Democrat who follows him will be a socialist and will be much worse for the economy than was Obama.”

Get Peter Schiff’s key gold headlines in your inbox every 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!

 


Related Posts

Peter Schiff: The Next Crash Could Bring Down the Fiat Money System

Peter Schiff appeared on RT Boom Bust on Tuesday (Sept. 17) to talk about interest rates, gold and the dollar. Peter said the fiat currency system may not survive the next recession. The conversation started focusing on the repo operations conducted by the Federal Reserve early in the week, Peter said the financial media and […]

READ MORE →

Peter Schiff: The Only Winners Will Be the People Who Bought Gold and Silver

Gold has been on a three-day skid, but as Fox Business anchor Liz Claman put it, “So what? It’s been a breakout summer for bullion.” Over the last three months, gold is up about 12% and has hit six-and-a-half year highs in recent weeks. Peter Schiff joined Claman, along with, Frank Holmes and Imaru Cassanova […]

READ MORE →

Peter Schiff: We’ve Accelerated the Process of the Dollar’s Demise

Is the US losing its grip on the world? And could the dollar ultimately be dethroned from its spot as the world’s reserve currency? We’ve reported extensively on countries working to undermine dollar hegemony and reduce the United States’ ability to weaponize the dollar as a foreign policy tool, along with the global gold rush on […]

READ MORE →

Peter Schiff: Trade Deals Won’t Fix the Economy

One day Trump is on Twitter ratcheting up the trade war with China and the next he is pulling back and saying a deal is close. This back-and-forth has been yo-yoing markets for months. Peter Schiff recently appeared on RT Boom Bust to talk about the trade war. He said he doesn’t think there’s much […]

READ MORE →

Peter Schiff: Gold Is Not Going to Stop This Time

Gold has continued to push upward. The latest catalyst was another escalation of the trade war. Gold briefly moved above $1,550 in dollar terms. But it has done even better in relation to other currencies. In fact, the yellow metal is at record highs in nearly every currency except the dollar. Peter Schiff appeared on […]

READ MORE →

Comments are closed.

Call Now