Peter Schiff: The Economy Is Not Volatile. “This Is The Beginning Of A Much Bigger Crisis!”
Posted by Mac Slavo on January 14, 2019 4:00 pm
Tags: Central Banks, crisis, debt crisis, Economy, everything bubble, FEDERAL RESERVE, financial crisis, Headline News, Interview, Peter Schiff, Rick Sanchez, RT, socialism is coming, The Fed, volatile
Categories: Central Banks crisis debt crisis Economy everything bubble federal reserve financial crisis Headline News Interview Peter Schiff Rick Sanchez RT socialism is coming The Fed US News volatile World News
In a recent interview with the media outlet, RT, Peter Schiff declared that the talking heads who call the economy “volatile” are wrong. Schiff says the economy isn’t volatile, it’s a bubble, and “this is the beginning of a much bigger crisis.”
“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 than 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.” -Peter Schiff, via Seeking Alpha
During a recent interview on RT News with Rick Sanchez, when asked what the Federal Reserve did wrong, Schiff replied “everything,” but there were some mistakes that were more glaring and disturbing than others.
“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.” –Peter Schiff
Schiff also said he doesn’t believe the Fed will continue to raise interest rates either. He thinks that they will drop rates down to practically zero again once the recession has officially been declared, making a bad situation even worse.
“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 Schiff
Schiff also warned of a Democrat win in 2020 thanks to president Donald Trump taking responsibility for the current economic bubble. Therefore, when it pops, Democrats will be able to blame the entire crash on Trump. Schiff said 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.”
“He [Trump] 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.”