Peter Schiff: The Dollar And American Standard Of Living Will Be ‘Biggest Casualties’
The United States economy is about to crash and it will take the dollar and the American standard of living with it. Peter Schiff, who currently serves as the CEO of Euro Pacific Capital, says it is time to prepare for the global market crash in light of the recent downturn.
“All the signs are already there. Look at what’s happening out there. The stock market is falling, 40 percent of the S&P is already in a bear market. Look at homebuilders, the housing stocks, the financials, the retailers – all these are the same things that were happening in 2007 leading to that crisis,“ Schiff, who accurately predicted the 2008 recession, told RT America. We don’t have much time left in this economic bubble if Schiff is correct.
After the dramatic early drop, U.S. stocks recovered but still finished lower after a wild day on Wall Street. By the closing bell, the Dow was down 126 points, or 0.5 percent, recovering most of its early losses. The Nasdaq closed down 0.4 percent, while the S&P 500 shed 15 points, finishing 0.6 percent lower. Schiff urged people to be prepared for not only an economic crisis but a political crisis as well with the current administration likely to take the blame.
According to Schiff, the US national currency is set to meet with the worst losses along with the American standard of living. Although the Trump administration is to blame for the trade war that is already wreaking havoc on American’s wallets, Schiff says the political crisis about to follow will be much worse.
“So, what you’ve got to do is get out of U.S. dollar assets. The dollar is going to be the biggest casualty along with the American standard of living,” he said, adding that foreign stock markets, especially emerging markets, currently depressed by the strong dollar would see a strong rise. “They are going to see a boom when the dollar weakens,” Schiff said.
The U.S. household debt, which is about $15 trillion, represents a crucial issue for the standard of living in the country. “Everybody is loaded up with debt, and it’s not like we began this monetary experiment without much debt. We had a lot of debt in 2008. In fact, the financial crisis was about debt, it was about our inability to pay the debt that we had,” Schiff said.
“But instead of addressing the problem and allowing the debt to be paid down, the Federal Reserve led us down the primrose path into much deeper debt by keeping interest rates at zero and holding them for so long. The Federal Reserve actually encouraged an overly indebted nation to borrow even more money,” Schiff said of the Fed’s terrifying response to the recession in 2008. But now, interest rate hikes are only going to destroy the economy which is barely hanging on. “So, everybody is loaded up with debt. And guess what? Interest rates are now finally rising, and that means the cost of servicing that debt is going up, and this is going [to] be a problem just like adjustable rate mortgage was a big problem in 2008, when these things were resetting,” he said. “People couldn’t afford to pay. Well, the same thing is going to happen on a national scale. Rates are growing up, and we are too broke to pay.”
The sad truth is that there’s no way to escape the inevitable. The ruling class has destroyed markets and trade and soon, we will all pay for trusting our lives to psychopaths who want nothing more than to control us and steal from us. “It’s impossible [to avoid an economic crash] because, in fact, we kept it going so long that collapse is going to be that much bigger, and sooner we face that reality the better. But no politician wants to face that reality, they want to pretend everything is great,” Schiff said during his interview with RT America.
“If the government is collecting less revenue, then the deficits are getting bigger and so the government has to borrow even more money, and that becomes an even bigger problem,” he said. “What we need is smaller government, but nobody wants to shrink government, including Donald Trump, who is now the defender of Social Security and Medicare,” Schiff said.