Economist and gold bug Peter Schiff says there are two possible outcomes from the Federal Reserve’s action on the US economy. One result that led to “a major financial crisis and severe recession” was the collapse of stocks, bonds, and real estate. In the second result, “the world will flee from the dollar,” the economist emphasizes.
Peter Schiff on the US economy: Two possible outcomes
Economist and economist Peter Schiff continues to share his views on the US economy and the Federal Reserve’s efforts to reduce inflation this week. On the position of the US economy, he tweeted Saturday that “There are two possible outcomes.” Describe one of the results, Mr detail:
The Fed has succeeded in bringing inflation back to 2%. Stocks, bonds, and real estate all collapsed, leading to a major financial crisis and severe recession that included defaults and cuts in government spending.
Moving on to the discussion of the second result, he Written: “Or the Fed pivots before inflation gets back to 2%. If the Fed pivots, either to avert a financial crisis or to respond to a financial crisis, inflation will soar, the opposite of what was experienced after the 2008 financial crisis. This time instead of running towards the dollar, the world will run away from the dollar.”
Schiff also tweeted Friday: “Everybody knows the high inflation of the 1970s didn’t end until Volcker got serious in the early 1980s. But over the 10 years from 1982-1992, the average annual CPI increase was 4.43%. The Fed did not bring inflation back to 2% until after the 2008 financial crisis.”
The yellow beetle often comments on the US economic situation on social networks. In September, he careful: “Inflation is here to stay and will get much worse despite rate hikes, driven by more than a decade of inflationary monetary and fiscal policy. This is very bearish for the dollar and bullish for gold.” “The days of inflation below 2% are gone,” Schiff noted.
Moreover, he emphasize in August that the United States was facing a “major financial crisis” that “will be a much bigger crisis when the defaults begin.” In May, he warning about a recession in the US that “would be much worse than the Great Recession.”
Schiff recently settled with Puerto Rico’s financial regulator and agreed liquidation its Euro Pacific bank without admitting any legal wrongdoing.
Do you agree with Peter Schiff on the US economy? Which outcome do you think is more likely? Let us know in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This newspaper only gives true information. It is not a direct offer or solicitation to buy or sell, or a recommendation or endorsement for any product, service or company. 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.