Article Image

IPFS News Link • Stock Market

Peter Schiff: This Is The Beginning Of A Much Bigger Crisis

• https://www.zerohedge.com, Via SchiffGold.com

But during a recent interview on RT News with Rick Sanchez, Peter Schiff said it's not that the economy is volatile. It's actually a bubble. And we are on the verge of a bigger crisis than the one we went through in 2008.

It's not a volatile economy, it's a bubble economy. Thanks to the Federal Reserve, they inflated an even bigger bubble, on purpose, than the one they inflated by accident that popped in 2008. And so the economy is in much worse shape structurally today then it was before it fell apart the last time. So, this is the beginning of a much greater crisis, of a much greater recession than the one that we experienced back in 2008."

Sanchez asked Peter what exactly the Federal Reserve did wrong. Peter said, basically, everything.

But the biggest things they did wrong were lowering interest rates down to zero, practically, and leaving them there for pretty much the entirety of the Obama presidency. And then they've barely raised them. They're still at 2%, which is very low. They also did all the quantitative easing where they printed a bunch of money and bought US government bonds and mortgage bonds. That enabled the housing bubble to reflate, and that enabled the US government to go much deeper into debt. So, the government didn't cut spending, which is what we needed. They increased spending. But it also enabled corporations to lever up and buy stocks. It enabled more Americans to go deeper into debt. So, it took a gigantic debt bubble and made it much bigger. And so now we're on the precipice of a much worse crisis."


midfest.info