Financial guru Peter Schiff, who accurately predicted the recession of 2008, says the problems we face now are even bigger. We will live through another Great Depression if Schiff is correct. And one of the main concerns is something very few dare to even mention or show a concern about: the national debt.
Schiff’s podcast from a few days ago highlights a very important problem with not only the economy as we know it but the mainstream media as well. Unable to take their attention off gun control regulations for even a moment to focus on a much bigger concern, the national debt, the mainstream media is effectively trying to hide what’s coming down the pipe. The lack of coverage seems to be spurring a lackadaisical attitude about the almost $21 trillion debt.
Let’s start at the beginning. Schiff begins his podcast talking about a book his father wrote; one of the only books to have been banned by the United States government. Yes, the US government banned a book titled “The Federal Mafia: How It Illegally Imposes And Unlawfully Collects Income Taxes” by Irwin Schiff in the “land of the free.”
“The bad news is, we are going to live through another Great Depression and it’s going to be very different. This will be in many ways, much much worse, than what people had to endure during the Great Depression,” Schiff says. “This is going to be a dollar crisis.”
“These hot inflation numbers that we’ve been getting are going to get a lot hotter…all this inflation that has been in the financial markets, in the stock markets, in the bond market, in the real estate market, everybody loved inflation when it was making you rich…the problem is going to be when it makes you poor. That’s when it starts showing up in the cost of living; all the things you need to buy end up being a lot more expensive.”
“When you are talking about the magnitude of the debt we have, that extra money [raising interest rates] is big. That’s going to be a big drain on the economy to the extent that we have to pay higher interest to international creditors…a lot of this phony GDP is coming from consumption, while the average American who is consuming is deeply in debt and they are going to impacted dramatically in the increase in the cost of servicing that debt…given how much debt we have, and how much debt is going to be marketed the massive increase in supply will argue for interest rates that are higher.”
“The Fed thinks they create economic growth…by [saying] ‘let’s jack up the stock market and then the economy’s going to grow and people are going to go out and spend more money.’ It’s actually doing damage. If you create a bunch of phony wealth, and people end up spending money that they otherwise would have saved, you are undermining economic growth.”
“Everything the Fed has done has undermined real economic growth, that is why this coming collapse is going to be so devastating,” says Schiff. “It’s shrinking government that grows the economy. When you make government smaller and you free up resources back into the private sector, that’s what grows the economy.”
Schiff again suggests looking at gold as a way to protect yourself against the dollar’s collapse.
Poster Comment:
Is Schiff referring to a scenario in which the Democrat-Communist Party again has the majority in Congress. I thought even the most illiterate Demo-Commie base would see the folly of committing economic suicide.
It’s my plan to find the Elite’s underground bunkers and outfit their air intake pipes with a toilet seat, and day after day grab my newspaper, mount the toilet seat, and then let er fly. They can breathe that in for a few days before they give up and come out to face justice.
#1: Gatlin To: IbJensen, All (#0)
Because he luckily got one right 20 years ago, now means this prediction will be true?
Nah.
Schiff is a “doom and gloomer” as well as being a “perma-bear” in the market.
He is always saying the “sky is falling.”
Scott Nations took him to task:
In the heated showdown, the NationsShares president interrupted Schiff as he defended his past predictions about the Federal Reserve, and said the U.S. economy has "been in a recession for this entire recovery." Schiff is a relentless critic of Fed policy, and for years has suggested the U.S. dollar was on the verge of an outright crash, encouraging investors to buy bullion.
"You can't have your own facts!" said Nations on CNBC last week. "You said in 2015 the Fed wouldn't raise rates and that QE4 was next," Nations said, referring to a fourth round of massive quantitative easing by the Fed. He added that Schiff has been "fundamentally wrong."
Schiff has long maintained that the Fed cannot continue to raise interest rates without sparking a major market crash, and urged investors to instead buy gold. That made Nations accuse him of trying to "scare" investors into buying the commodity for his own benefits.
"I recommend what I think is going to make investors money. Gold is outperforming the U.S. stock market this year by triple," the Euro Pacific Capital CEO responded. "Buying gold and having gold in your portfolio has been a wise choice for investors."
In 2013 Schiff notoriously called for gold to hit $5,000 per ounce, a prediction that hasn't quite panned out with gold only trading near $1,300.
Nevertheless, Schiff reiterated his faith in his market predictions, especially his call that the economic outlook is problematic.
"Even [former Fed chairman] Alan Greenspan is forecasting stagflation, and he ought to know because he wrote the playbook that Ben Bernanke and Janet Yellen are following," said Schiff.
"You can make fun of me, you can tell all the jokes you want, but I'm going to be laughing all the way to the bank," he retorted to end the debate.
Gatlin posted on 2018-03-03 07:57:54 Reply Private Reply
#2: U don't know me To: Gatlin (#1)
I don't believe anything from these TV forecasters. When have they ever told the truth.
U don't know me posted on 2018-03-03 08:14:41 Reply Private Reply
#3: Gatlin To: U don't know me (#2)
Gatlin posted on 2018-03-03 08:37:23 Reply Private Reply
#4: rlk To: IbJensen (#0)
This statement is correct. The reason is, beneath all the psychobabble there is little attention to the real basis of economics.
rlk posted on 2018-03-03 09:21:02 Reply Private Reply
#5: IbJensen To: rlk (#4)
This race bating has set the Negroes back to the 1950's! They are the anchor around the neck of the American economy. Gone are the days when a negro father sat proudly at the head of the table watching his family eat the food that he provided through honest work. Now daddy is gone. The wild looking youths seated at the table have hair styles that make them resemble buffalo are greedily shoving KFC into their pie holes not speaking because their dialect is so confusing even they can't understand it.
The boys plot the next drug deal or fix. The girls are wondering who they'll let screw them tonight and how much they'[l charge. They want to get pregnant so that Uncle Whiskers will pay them money and give them stamps that they can use to buy anything.
What's missing from America's dilemma? GOD! Adherence to the ten commandments and a school where the three R's are drummed into their napp0y little skulls instead of how to slide a condom over a banana. Selfish, Godless politicians are the contributors to this 'Great Society.'
At what point will a majority realize that enough is quite enough?
IbJensen posted on 2018-03-03 10:17:14 Reply Private Reply
#6: Tooconservative To: IbJensen (#0)
The problem being that Schiff, like Ron Paul, had issued jeremiads of doom against the evils of fiat currency and the Fed for decades and they were wrong every single year. Until there finally was a collapse in 2008.
Now they try to pretend that they are unsung prophets instead of just trying to cash in on having finally been right once in 2008 about doom-doom-doom. The accuracy of their predictions can be compared to the stopped clock being right twice a day.
I like Ron Paul but an accurate financial prognosticator, he is not. He may well be right about an ultimate collapse due to the Fed, massive debt, and overinflated currency but so far he doesn't have much to show for his doommongering.
Tooconservative posted on 2018-03-03 10:57:13 Reply Private Reply
#7: sneakypete To: IbJensen (#0)
Only if things go according to plans.
sneakypete posted on 2018-03-03 15:39:54 Reply Private Reply
#8: sneakypete To: IbJensen (#5)
Yup! Why sell yourself into slavery to some little communist punk that can only kill or imprison you if you don't follow his dictates,when you can sell yourself to an "all-powerful GAWD!" that can tag your ass with a lightening bolt,and THEN make you burn for all eternity in a vat of burning oil if you piss HIM off?
sneakypete posted on 2018-03-03 15:43:34 Reply Private Reply
#9: sneakypete To: IbJensen (#0)
I ain't saying they are old money,but the first Schiff to come to America after escaping from Russia one step ahead of the Czars police managed to STILL have enough money after abandoning all that Russian property to lend the Japanese enough money to build the Naval Fleet that defeated the Russian Navy in the Sino-Japanese War of 1905.
Can you even begin to imagine how much wealth they had before the Czar seized their Russian bank accounts and real property?
sneakypete posted on 2018-03-03 15:50:02 Reply Private Reply
#10: IbJensen To: sneakypete (#8)
You don't sell yourself to 'Gawd'. Very poor syntax that soundeth like an oath.
IbJensen posted on 2018-03-04 06:54:33 Reply Private Reply
#11: rlk To: IbJensen (#5)
Never because an increasing proportion of younger generations gets propagandized into supporting it.
rlk posted on 2018-03-04 21:37:45 Reply Private Reply
#12: paraclete To: IbJensen (#5)
When the robots march down the streets exterminating the rabble
paraclete posted on 2018-03-04 23:21:04 Reply Private Reply