Economist Peter Schiff Warns of Financial Crisis and ‘Much More Severe Recession’ Than the Fed Recognizes

Economist and gold bug Peter Schiff has warned of a monetary disaster and a way more extreme recession than the Federal Reserve acknowledges. “The economy is not only going to weaken, but weaken much more than the markets expect,” the economist harassed.

Peter Schiff’s Warning

Gold bug and economist Peter Schiff voiced his considerations concerning the U.S. economic system a number of instances this week. Commenting on the Federal Reserve’s efforts to curb inflation, he mentioned:

The actuality is inflation just isn’t going to weaken. It’s going to strengthen. The economic system just isn’t solely going to weaken, however weaken way more than the markets count on.

“The real cause of inflation is the U.S. government and the Federal Reserve acting in concert with one another, where the U.S. government spends money it doesn’t have, and then the Fed prints the money for the government to spend — that is why we have inflation,” he defined.

In an interview with Fox Business on Wednesday, Schiff commented on the speech by Federal Reserve Chairman Jerome Powell who claimed that disinflation “has begun” however goes to take time. Schiff argued: “That disinflation is transitory. Maybe he doesn’t realize that yet, but it is.”

Emphasizing that the federal government has continued to spend billions of {dollars} each month, Schiff mentioned if the Fed chairman believes {that a} slowdown within the economic system goes to chill inflation, he could be incorrect. The gold bug opined:

That’s truly going to gas the inflation fireplace. The actual threat is that we find yourself with a monetary disaster and a way more extreme 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 primary time that Schiff has voiced his considerations concerning the U.S. economic system. At the top of final yr, he mentioned that inflation was about to get much worse, and the U.S. greenback will face certainly one of its worst years ever. In October final yr, he mentioned the greenback will crash and the U.S. goes to default on its debt. He additionally predicted that the Federal Reserve’s motion may result in market crashes, an enormous monetary disaster, and a extreme recession.

Do you agree with Peter Schiff concerning the U.S. economic system? Let us know within the feedback part beneath.