Economist Peter Schiff warns of a financial crisis and a ‘much deeper recession’ than the Fed acknowledges –
Economist and gold bug Peter Schiff has warned of a financial crisis and a much deeper recession than the Federal Reserve is recognizing. “The economy will not only weaken, but weaken much more than the markets expect,” emphasized the economist.
Peter Schiff’s warning
Gold bug and economist Peter Schiff expressed his concerns about the US economy several times this week. To the efforts of the Federal Reserve, the inflation contain, he said:
The reality is that inflation will not abate. It will strengthen. The economy will not only weaken, it will weaken much more than markets are expecting.
“The real cause of inflation is that the US government and the Federal Reserve act together, where the US government spends money it doesn’t have, and then the Fed prints the money that the government can spend – hence we inflation have,” he explained.
In an interview with Fox Business on Wednesday, Schiff commented on Federal Reserve Chair Jerome Powell’s speech claiming that disinflation has “started” but will take time. Schiff argued, “This disinflation is temporary. Maybe he doesn’t realize that yet, but that’s how it is.”
Stressing that the government continues to spend billions of dollars every month, Schiff said if the Fed chair thinks a slowdown in the economy will cool inflation, he’d be wrong. The gold beetle said:
This will actually fuel the inflationary fire. The real risk is that we end up with a financial crisis and a much deeper recession than the Fed is recognizing.
“And then the Fed tries to prop up the economy to try to boost or fight the financial crisis by creating even more inflation,” he warned.
This wasn’t the first time Schiff had expressed concern about the US economy. Late last year, he said inflation was about to get much worse and the US dollar was in for one of its worst years ever. In October last year he said the dollar would plummet and the US would default on its debt. He also predicted that the Federal Reserve’s actions could lead to market crashes, a massive financial crisis and a severe recession.
Do you agree with Peter Schiff on the US economy? Let us know in the comment section below.
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Source: Crypto News Deutsch
