Economist and gold lover Peter Schiff has warned of a much more serious financial crisis and recession than the Federal Reserve acknowledges. “The economy is not only going to weaken, but it will weaken much more than what the markets expect,” the economist stressed.
Warning from Peter Schiff
Economist and gold lover Peter Schiff has raised concerns about the US economy several times this week. Commenting on the Federal Reserve’s efforts to curb inflation, he said:
The reality is that inflation is not going to weaken. It will get stronger. The economy is not only going to weaken, but it will weaken much more than the markets expect.
“The real cause of inflation is that the US government and the Federal Reserve act in concert, where the US government spends money it doesn’t have, and then the Fed prints the money for the government spend it; that is why we have inflation,” he explained.
In an interview with Fox Business on Wednesday, Schiff commented on Federal Reserve Chairman Jerome Powell’s speech that disinflation “has started” but it will take time. Schiff argued: “That disinflation is transitory. Maybe he doesn’t realize that yet, but he is.”
Emphasizing that the government has continued to spend billions of dollars each month, Schiff said that if the Fed chair believes that a slowdown in the economy is going to cool inflation, he would be wrong. The golden insect opined:
That’s actually going to fuel the fire of inflation. The real risk is that we end up with a much more severe financial crisis and recession than the Fed acknowledges.
“And then the Fed tries to prop up the economy to try to stimulate or combat the financial crisis by creating even more inflation,” he warned.
This was not the first time that Schiff had raised concerns about the US economy. Late last year, he said inflation was about to get worse and the US dollar would face one of the worst years in his history. In October of last year, he said that the dollar will collapse and that the US will default on its debt. He also predicted that the Federal Reserve’s action could lead to market crashes, a massive financial crisis, and a severe recession.
Do you agree with Peter Schiff on the American economy? Let us know in the comments section.
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