Peter Schiff Warns U.S. Faces “Mass Financial Crisis,” Economists Expect Problems to Be Much Bigger Than 2008 “When Defaults Begin” – Bitcoin News

Economist and gold bug Peter Schiff usually has a lot to say, and last week Schiff explained in an interview that he believes the U.S. will face a financial crisis worse than the “Great Recession” of 2008. Schiff explained that the U.S. has far more debt than it did at the time, insisting that a U.S. recession “will be a much bigger crisis when defaults begin.”

The fall in U.S. inflation is “only temporary,” says Euro Pacific Asset Management’s chief market strategist

As Peter Schiff detailed that he would liquidate his Europac, the economist sat down with Kitco News anchor and producer David Lin to discuss the U.S. economy. A day before speaking with Lim, Schiff explained that while inflation appears to be cooling, he believes the trend will not continue. “Paradoxically, investors sold dollars and bought gold on a weaker-than-expected July CPI increase as they thought the Fed would be less aggressive,” Schiff Say on Twitter. “They were right to sell dollars for gold, but for the wrong reasons. The drop in inflation is only temporary.”

On the Kitco News broadcast, Schiff went into further detail about why he thinks the U.S. economic downturn will be uglier than the one in 2008. If the Fed keeps raising interest rates, a financial crisis is inevitable, Schiff said. “2008 was about bad debts​​,” the gold digger and economist emphasized. “It’s about people borrowing money and not being able to pay it back. The collateral on the loan is bad because it’s real estate and prices are falling. Well, we have a lot more debt now than we were in 2008…so when defaults started, it was It’s going to be a bigger crisis.”

This time, however, America’s financial giants won’t be bailed out, Schiff noted. The Economist commented:

When they fail, it’s worse, except for hyperinflation and the Fed battling it. There is no TARP 2.0. All these banks will have to be allowed to fail.

U.S. inflation “will last for many years, probably for the rest of the decade,” Schiff said

Schiff’s comments follow the release of the U.S. Bureau of Labor Statistics’ consumer price index (CPI) report for July, which reflected a year-over-year increase of 8.5%. The CPI report was heavily criticized after U.S. President Joe Biden said the U.S. economy had zero inflation in July. Before Biden’s comments, the U.S. government sought to redefine the technical definition of the term “recession.” “If you believe the official CPI, prices that were already very high didn’t go up in July,” Schiff told Kitco presenters. Schiff added:

I don’t think that’s something to celebrate…consumers aren’t really getting relief from falling prices. There is no doubt that we will get a figure higher than 9.1%. We are far from solving this inflation problem. It will be here for many years, most likely the rest of the decade, and then some.

Schiff’s comments on the official CPI data follow a post on schiffgold.com on the same day that claimed the Bureau of Labor Statistics’ CPI calculation uses a government formula that underestimates real price increases. Additionally, statistics from shadowstats.com’s Alternative Inflation Chart show that inflation is much higher than the official report.

Indicators from the Truflation Index also pointed to inflation well above the CPI, which stood at 9.41% on August 14. In an interview with Schiff and Lim, the economist said he expected a “massive financial crisis” and major problems with the dollar. When the dollar depreciates, he expects the value of gold and silver to soar.

“So far, in the early stages of this great inflation, the dollar has risen as investors become disillusioned with the Fed’s ability to rein in inflation and bring it down to 2%,” Schiff concluded. “When they realize that inflation will be above 2% indefinitely, the dollar will fall below the bottom line, and then gold and silver will peak.”

tags in this story

2008, 2008 Financial Crisis, 8.5%, 9.1%, 9.1%, Consumer Price Index, CPI, Depression, Economist, Europac, Europac, Financial Crisis, Forecast, Gold, Gold Bug, Great Recession , Joe Biden, macroeconomic data, Peter Schiff, forecast, recession, shadowstats.com, silver, Truflation index, US Bureau of Labor Statistics, US economy, US government, US inflation, US President, White House

What do you think of Peter Schiff’s views and economic forecasts? Do you think Schiff’s prediction is correct or do you think he will be wrong? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is the Head of News at Bitcoin.com News and a fintech reporter living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written over 5,700 articles for Bitcoin.com News on the disruptive protocols emerging today.




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