Tradingfxdaily.com
  • Home
  • Forex
  • Crypto News
    • NFT News
  • World News
  • Business
  • Stock Market
  • Economic Calendar
No Result
View All Result
  • Home
  • Forex
  • Crypto News
    • NFT News
  • World News
  • Business
  • Stock Market
  • Economic Calendar
No Result
View All Result
Tradingfxdaily.com
No Result
View All Result
Home Crypto News

Peter Schiff Warns US Faces a ‘Massive Financial Crisis,’ Economist Expects Much Larger Problems Than 2008 ‘When the Defaults Start’ – Economics Bitcoin News

tradingfxdaily by tradingfxdaily
August 15, 2022
in Crypto News
0
Peter Schiff Warns US Faces a ‘Massive Financial Crisis,’ Economist Expects Much Larger Problems Than 2008 ‘When the Defaults Start’ – Economics Bitcoin News
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

The economist and gold bug Peter Schiff usually has a lot to say, and this past week Schiff explained during an interview that he believes the U.S. will face a financial crisis worse than 2008’s ‘Great Recession.’ Schiff explains that the U.S. has a lot more debt than it did back then, and insists America’s economic downturn “is going to be a much bigger crisis when the defaults start.”

Chief Market Strategist at Euro Pacific Asset Management Says the Decline in US Inflation ‘Is Only Temporary’

While Peter Schiff detailed that he would liquidate his Euro Pacific Bank, the economist sat down to discuss the American economy with the anchor and producer at Kitco News, David Lin. The day before he spoke with Lin, Schiff explained that even though inflation is seemingly cooling, he believes the trend will not last. “Paradoxically investors are selling dollars and buying gold on a lower than expected rise in July CPI, as they think the Fed will adopt a less aggressive policy,” Schiff said on Twitter. “They’re right to sell dollars and buy gold, but for the wrong reasons. The decline in inflation is only temporary.”

U.S. productivity fell 4.6% in Q2 following a 7.4% fall in Q1. YoY productivity fell 2.5%, the largest drop since the series started in 1948. With falling productivity real wages must fall and consumer prices must rise. Government created #inflation is making both problems worse.

— Peter Schiff (@PeterSchiff) August 9, 2022

While speaking on the Kitco News broadcast, Schiff further explained in greater detail why he thinks America’s economic downturn will be more ugly than 2008’s economic decline. Schiff says if the Federal Reserve keeps raising interest rates, then a financial crisis is inevitable. “2008 was about bad debt,” the gold bug and economist stressed. “It was about people borrowing money and they couldn’t pay it back. The collateral for the loans was no good because it was real estate, and prices went down. Well, we have much more debt now than we had in 2008 … And so this is going to be a much bigger crisis when the defaults start.”

This time around, however, America’s financial giants won’t get bailed out, Schiff noted. The economist remarked:

When they fail, it’s going to be a lot worse, except with inflation too high and the Fed fighting inflation. There’s no TARP 2.0. All these banks are going to have to be allowed to fail.

Schiff Says US Inflation Is ‘Going to Be Here for Years and Years, and Probably the Remainder of This Decade’

Schiff’s comments follow the U.S. Bureau of Labor Statistics July Consumer Price Index (CPI) report, which reflected a year-over-year increase of 8.5%. Following the CPI report, U.S. president Joe Biden was criticized a great deal when he said the American economy had zero percent inflation in July. Biden’s commentary followed the U.S. government attempting to redefine the technical definition of the word “recession.” “If you believe the official CPI, then prices, that are already very high, did not get any higher during the month of July,” Schiff told the Kitco show host. Schiff added:

I don’t think that’s something to celebrate… It’s not like consumers actually got the relief of prices coming down. There’s no doubt in my mind that we will get a higher number than 9.1 percent. We are nowhere near done with this inflation problem. It is going to be here for years and years, and probably the remainder of this decade and then some.

Schiff’s commentary about the official CPI numbers follows the post published on schiffgold.com the same day, which claims the Bureau of Labor Statistics’ CPI calculation uses a government formula that understates the actual rise in prices. Additionally, statistics from shadowstats.com’s alternative inflation charts show inflation is much higher than official reports.

Even multiple jobs don’t allow workers to keep pace with #inflation. June consumer credit surged by a much higher than expected $40.1 billion, while credit card debt soared at an annualized rate of 16%, as consumer went deeper into debt to afford to buy higher priced necessities.

— Peter Schiff (@PeterSchiff) August 5, 2022

Metrics from the Truflation Index also indicate a much higher inflation rate than the CPI, with August 14 data at 9.41%. During Schiff’s interview with Lin, the economist said he expects a “massive financial crisis” and major issues with the U.S. dollar. When the dollar fails, he expects gold and silver values to skyrocket.

“The dollar has risen so far, in the early stages of this big inflation, because investors are delusional about the Fed’s ability to contain inflation and bring it back down to 2 percent,” Schiff concluded. “When they wake up to reality, that inflation is going to be way above 2 percent indefinitely, then the dollar is going to fall through the floor, and then gold and silver will go through the roof.”

Tags in this story
2008, 2008 Financial Crisis, 8.5%, 9.1 percent, 9.1%, consumer price index, CPI, Depression, Economist, Euro Pacific Asset Management, Euro Pacific Bank, Financial Crisis, Forecasts, gold, Gold Bug, Great Recession, Joe Biden, macroeconomic data, Peter Schiff, Predictions, 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 about Peter Schiff’s opinions and economic forecasts? Do you think Schiff’s predictions are correct or do you think he will be wrong? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com News about the disruptive protocols emerging today.




Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

More Popular News

In Case You Missed It

Source link

Related articles

Bitcoin ‘so bullish’ at $23K as analyst reveals new BTC price metrics

Bitcoin ‘so bullish’ at $23K as analyst reveals new BTC price metrics

January 29, 2023
Robert Kiyosaki Says ‘We Are in Global Recession’ — Warns of Soaring Bankruptcies, Unemployment, Homelessness – Economics Bitcoin News

Robert Kiyosaki Says ‘We Are in Global Recession’ — Warns of Soaring Bankruptcies, Unemployment, Homelessness – Economics Bitcoin News

January 29, 2023
Share76Tweet47

Related Posts

Bitcoin ‘so bullish’ at $23K as analyst reveals new BTC price metrics

Bitcoin ‘so bullish’ at $23K as analyst reveals new BTC price metrics

by tradingfxdaily
January 29, 2023
0

Bitcoin (BTC) remains firmly “bullish” at $23,000, according to new on-chain metrics from one of the industry’s best-known names.In a...

Robert Kiyosaki Says ‘We Are in Global Recession’ — Warns of Soaring Bankruptcies, Unemployment, Homelessness – Economics Bitcoin News

Robert Kiyosaki Says ‘We Are in Global Recession’ — Warns of Soaring Bankruptcies, Unemployment, Homelessness – Economics Bitcoin News

by tradingfxdaily
January 29, 2023
0

The famous author of the best-selling book Rich Dad Poor Dad, Robert Kiyosaki, says that we are in a global...

Yuga Labs co-founder to take leave of absence due to health reasons

Yuga Labs co-founder to take leave of absence due to health reasons

by tradingfxdaily
January 29, 2023
0

Nonfungible token (NFT) entrepreneur Wylie Aronow of Yuga Labs — the team behind Bored Ape Yacht Club (BAYC) and CryptoPunks...

White House Publishes ‘Roadmap’ to Mitigate Cryptocurrency Risks – Regulation Bitcoin News

White House Publishes ‘Roadmap’ to Mitigate Cryptocurrency Risks – Regulation Bitcoin News

by tradingfxdaily
January 29, 2023
0

The White House has published a “roadmap to mitigate cryptocurrencies’ risks.” The roadmap calls for authorities to “ramp up enforcement...

Core Scientific files motion to sell over $6M in Bitmain coupons

Core Scientific files motion to sell over $6M in Bitmain coupons

by tradingfxdaily
January 29, 2023
0

Bankrupt Bitcoin (BTC) mining firm Core Scientific filed on Jan. 25 an emergency motion seeking to sell Bitmain coupons worth...

Load More
  • Trending
  • Comments
  • Latest
Short SPX: Top Trade Opportunities

Short SPX: Top Trade Opportunities

April 5, 2022
The Top 5 Metaverses to Look Out for in 2022

The Top 5 Metaverses to Look Out for in 2022

March 26, 2022
What is Leverage in Forex? Forex Leverage Explained

What is Leverage in Forex? Forex Leverage Explained

April 19, 2022

Larry Fink says globalization is over — Here’s what it means for the markets

March 26, 2022
Tesla Stock Split: What to Know as EV Maker Prepares to Split Its Stock in 2022

Tesla Stock Split: What to Know as EV Maker Prepares to Split Its Stock in 2022

March 28, 2022
European equity close: Another week of gains but the momentum slows

European equity close: Another week of gains but the momentum slows

0

In a Less-Globalized World, Be Careful Where You Park Your Plane

0
Cardano pares most of its Q1 losses as ADA rebounds 60% in a month — What’s next? By Cointelegraph

Cardano pares most of its Q1 losses as ADA rebounds 60% in a month — What’s next? By Cointelegraph

0

Larry Fink says globalization is over — Here’s what it means for the markets

0
Natural-Gas Industry Gets Boost as Biden Shifts Stance

Natural-Gas Industry Gets Boost as Biden Shifts Stance

0
European equity close: Another week of gains but the momentum slows

European equity close: Another week of gains but the momentum slows

January 29, 2023
Boris Johnson: Britain will be sucked back into EU’s orbit if Labour take over

Boris Johnson: Britain will be sucked back into EU’s orbit if Labour take over

January 29, 2023
FTX Collapse: Bankman-Fried Wants to Avoid Arrest on US Soil

FTX: DOJ Seeks to Ban Bankman-Fried From Using Signal, Slack to Contact Employees

January 29, 2023
Bitcoin ‘so bullish’ at $23K as analyst reveals new BTC price metrics

Bitcoin ‘so bullish’ at $23K as analyst reveals new BTC price metrics

January 29, 2023
Chinese Education Stocks Gain After Post-Crackdown Business Overhauls

Chinese Education Stocks Gain After Post-Crackdown Business Overhauls

January 29, 2023
Tradingfxdaily.com

Tradingfxdaily.com is your Forex, Stock News, World News, Crypto Currency News, Business News & NFT News Website. We provide you with the latest breaking news and videos straight from the Trading industry.

  • Home
  • About us
  • Contact Us
  • Privacy Policy

© 2022 - All Right Reserved. tradingfxdaily.com

No Result
View All Result
  • Home
  • Forex
  • Crypto News
    • NFT News
  • World News
  • Business
  • Stock Market
  • Economic Calendar

© 2022 - All Right Reserved. tradingfxdaily.com

EURUSD=X 
$1.09  -0.16%  
EURCAD=X 
$1.45  -0.28%  
EURJPY=X 
$141.09  -0.45%  
GBPUSD=X 
$1.24  -0.10%  
EURNZD=X 
$1.67  -0.27%  
AUDUSD=X 
$0.7106  -0.15%  
CADUSD=X 
$0.7514  0.10%