The economist and gold bug Peter Schiff usually has a lot to say, and this past week Schiff explained during an interview that he believes the U.S. will face a financial crisis worse than 2008's 'Great Recession.' Schiff explains that the U.S. has a lot more debt than it did back then, and insists America's economic downturn "is going to be a much bigger crisis when the defaults start."

Chief Market Strategist at Euro Pacific Asset Management Says the Decline in US Inflation 'Is Only Temporary'

While Peter Schiff detailed that he would liquidate his Euro Pacific Bank, the economist sat down to discuss the American economy with the anchor and producer at Kitco News, David Lin. The day before he spoke with Lin, Schiff explained that even though inflation is seemingly cooling, he believes the trend will not last. "Paradoxically investors are selling dollars and buying gold on a lower than expected rise in July CPI, as they think the Fed will adopt a less aggressive policy," Schiff said on Twitter. "They're right to sell dollars and buy gold, but for the wrong reasons. The decline in inflation is only temporary."

While speaking on the Kitco News broadcast, Schiff further explained in greater detail why he thinks America's economic downturn will be more ugly than 2008's economic decline. Schiff says if the Federal Reserve keeps raising interest rates, then a financial crisis is inevitable. "2008 was about bad debt," the gold bug and economist stressed. "It was about people borrowing money and they couldn't pay it back. The collateral for the loans was no good because it was real estate, and prices went down. Well, we have much more debt now than we had in 2008 … And so this is going to be a much bigger crisis when the defaults start."