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

Peter Schiff: This Is the Beginning of a Much Bigger Crisis (Video)

  by    0   1

Wall Street has been on a roller coaster ride over the last few months. If you listen to the pundits on the financial networks, you’ll hear the word “volatile” used over and over again. That word certainly seems to describe the current state of US stock markets and in a broader sense the economy. But during a recent interview on RT News with Rick Sanchez, Peter Schiff said it’s not that the economy is volatile. It’s actually a bubble. And we are on the verge of a bigger crisis than the one we went through in 2008.

It’s not a volatile economy, it’s a bubble economy. Thanks to the Federal Reserve, they inflated an even bigger bubble, on purpose, than the one they inflated by accident that popped in 2008. And so the economy is in much worse shape structurally today then it was before it fell apart the last time. So, this is the beginning of a much greater crisis, of a much greater recession than the one that we experienced back in 2008.”

Sanchez asked Peter what exactly the Federal Reserve did wrong. Peter said, basically, everything.

But the biggest things they did wrong were lowering interest rates down to zero, practically, and leaving them there for pretty much the entirety of the Obama presidency. And then they’ve barely raised them. They’re still at 2%, which is very low. They also did all the quantitative easing where they printed a bunch of money and bought US government bonds and mortgage bonds. That enabled the housing bubble to reflate, and that enabled the US government to go much deeper into debt. So, the government didn’t cut spending, which is what we needed. They increased spending. But it also enabled corporations to lever up and buy stocks. It enabled more Americans to go deeper into debt. So, it took a gigantic debt bubble and made it much bigger. And so now we’re on the precipice of a much worse crisis.”

As Sanchez put it, the fear is that if the Fed continues to raise rates, it will pop the bubbles and the economy will come crashing down. But Peter said that’s not what’s going to happen. In fact, the Fed isn’t going to keep raising rates. Ultimately, the central bank will push rates back to zero and launch another round of QE when it becomes clear that the economy has entered into a recession.

That is going to take a very bad situation and make it much worse because it’s not going to work like it did last time in that it blew up a bigger bubble. This is going to blow up in everybody’s face. It’s not going to cause real estate prices to go up or stock prices. It’s going to cause food prices to go up, gasoline prices. It’s the cost of living that’s going to rise, not the stock market. And so this is going to be an inflationary recession.”

Peter went on to say that when the Democrats take control of the White House and Congres in 2020, they will turn the inflationary recession into an inflationary depression.

The problem is Trump made the economy his political issue.

He put his brand on a bubble and when that bubble pops, it’s going to be very easy for the Democrats to blame all the problems on Trump and that’s what’s going to enable them to win in a landslide in 2020.”

As Peter put it, the people aren’t going to vote for four more years of Trump during a recession. They’re going to vote for socialism, “Which is going to give us four more years of hell.”

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!


Related Posts

Peter Schiff: The US Is Losing the Trade War

There’s been a lot of optimism about the phase 1 trade deal over the last couple of weeks. Stocks have surged on the news of a possible deal. Meanwhile, gold and silver have dipped. Peter Schiff appeared on RT Boom Bust and said the optimism is misplaced. The US is losing the trade war to […]

READ MORE →

Peter Schiff: Investors Are in for a Painful Awakening

Last Tuesday, the S&P 500 made a record high as markets anticipated another Fed rate cut. Some analysts say the big risk is that we’re seeing a boost in asset prices but no real uptick in the actual economy. Peter Schiff appeared on RT Boom Bust to talk about it. He said investors buying onto […]

READ MORE →

Ron Paul: Foreign Central Banks Going for Gold

Foreign central banks have been stocking up on gold for months. According to the World Gold Council, a dozen central banks have increased their gold reserves by at least 1 ton through the first eight months of 2019. This continues a trend we saw through 2018. In total, the world’s central banks accumulated 651.5 tons […]

READ MORE →

Why Is Gold So Expensive? (Video)

Gold is the “shining embodiment of wealth.”  It is not only used to add “extra bling” to our lives; it is also an important component in expensive high-tech electronics and medical devices. Even more fundamentally, gold is money. But why is gold so expensive — even more valuable than other rarer metals? A video put […]

READ MORE →

Peter Schiff: The Fed Will Try Again But It’s Not Going to Work

“In case the people in this room didn’t know, the financial crisis of 2008, which I had been forecasting for some time, and the Great Recession that ensued, was caused predominantly by the Federal Reserve.” This was the opening line of Peter Schiff’s talk at the Las Vegas MoneyShow. The Fed managed to “rescue” the […]

READ MORE →

Comments are closed.

Call Now