Economist Peter Schiff Warns of ‘Massive Crisis’ and a Rush to Exit US Dollar

Economist Peter Schiff has warned of “a rush” to get out of the U.S. greenback. “There’s going to be a massive crisis,” he predicted, including that “it’s going to send the economy into a tailspin and people are going to feel the economic pain.”

Peter Schiff’s US Dollar Warning

Economist and gold bug Peter Schiff reiterated his warning concerning the impending collapse of the U.S. greenback in an interview with David Rodriguez final week.

Replying to a query about whether or not everyone seems to be escaping the U.S. greenback, Schiff stated: “They will be. Right now, it’s just kind of like a trickle.” However, he careworn:

It’s gonna be a deluge earlier than too lengthy the place it’s a rush to get out of the greenback.

Schiff defined {that a} mass exodus of the U.S. greenback will occur “because we have these deficits — $2 trillion-plus annual budget deficits — not only as far as the eye can see, but the eye can see them getting much bigger than $2 trillion, $3 trillion, $4 trillion.” He exclaimed: “It’s completely unsustainable during the next official recession. When unemployment really spikes back up, the deficits are going to be $4 trillion a year, $5 trillion a year. Right now, we almost have a $33 trillion national debt [and] interest on the debt is now the third largest line item in the government budget.”

The economist added: “By next year, the interest on the debt is going to be the biggest expense the government has … Eventually, it will be the only expense we have. If this continues, there won’t be any money left over for anything but interest and, obviously, we can’t get to that point.” He predicted:

There’s going to be a large disaster lengthy earlier than we get there and, , it’s going to ship the financial system right into a tailspin and individuals are going to really feel the financial ache.

Schiff additionally famous that many international locations worldwide are ditching the U.S. greenback and utilizing nationwide currencies in worldwide commerce, such because the BRICS nations. He careworn that the United States has used the U.S. greenback as a weapon by means of sanctions, corresponding to when it froze Russia’s greenback reserves. “That was a huge wake-up call to every nation in the world but in particular a nation like China … and maybe Saudi Arabia,” he opined, elaborating:

It despatched a message: ‘Get out of the greenback, in any other case you might be in a really susceptible place as a result of the U.S. may punish you for utilizing the greenback.’

Schiff has repeatedly warned concerning the U.S. financial system and the U.S. greenback. Last week, he stated the U.S. can’t afford to decouple from China. Last month, he warned of a “full-blown financial crisis” hitting the U.S. financial system.

Do you agree with economist Peter Schiff concerning the U.S. financial system and the U.S. greenback? Let us know within the feedback part under.