Schiff, who is CEO of Euro Pacific Capital, told the MoneyShow that more than 60 cents out of every dollar the government is spending is being printed. So, the Federal Reserve is printing more money for the government to spend than the US government is collecting in taxes.
"The myth is that the US economy was strong before Covid. It wasn't strong at all; it was the weakest it has ever been. It was the biggest bubble that has ever existed. That's why the economy imploded so quickly as a result of Covid-19 lockdowns. The air started coming out in the fourth quarter of 2018… And the dollar is being wiped out."
Schiff points out that "everything that the US government did in the aftermath of the 2008 financial crisis was a mistake." All of its monetary policy was wrong, all of its fiscal policy was wrong. "As a consequence, we never actually recovered from the crisis, which was caused by the Fed and the government. We simply made all the problems that caused that crisis worse."
America is about to experience inflation on an unprecedented scale, he says. The cost of living is going to skyrocket and it's going to happen very quickly. "It's going to hit people like a ton of bricks. And they are not going to see this coming."