Peter Schiff, a market analyst who had accurately predicted the 2008 recession and the recent stock market plunge says more is coming. Wait until you hear what he says is on the horizon for America and the global economy in the Trump era.
In an interview with Infowars‘ Alex Jones, Schiff details what we can all expect from the economy. And even though Trump has fought to save the economy, the federal reserve is working against the president. “Unfortunately, he is the fall guy. There’s no way to stop this,” Shiff begins.
“The problem is so big that the minute the Fed has to try to solve it, it’s gonna unleash a much bigger one [problem],” Shiff says. Jones begins his intro by not sugar coating the problem the economy is in thanks to government interference. The economy is a giant bubble and it will pop at some point, not just deflate.
“The Fed were dragging their feet in raising rates while Obama was president. They talked about raising rates but at the end of the day, they barely moved them up. The pace of hikes has increased since Trump was elected, but part of the reason for that…I mean, the media is not talking down the economy; if anything they’re overhyping the economy. Everybody’s talking about how strong the economy is, how everything is great. Everybody is taking credit for this great economy. The Fed wants to take credit for it, Trump wants to take credit for it, so if everybody wants to talk about how great the economy is, the Fed doesn’t have any excuse if it doesn’t raise rates…in order to keep up the pretense that the economy is as strong as everybody thinks, the Fed is in this box where it has to raise rates.
But they [the Fed] can’t tell the truth that it’s really a bubble, and if we raise rates, we’re gonna prick it, so they’re kinda in this bind. And they are still telegraphing that they’re gonna raise rates three or four times this year. And that is the problem.“
Schiff then goes on to explain some of the problems Trump inherited from Obama that will be difficult, if not impossible to solve without a crisis.
“One of the things the happened under Obama, is he inherited a massive deficit from Bush. The deficit skyrocketed in 2008/2009 and so, after a couple of years, the deficits were slowly falling while Obama was president. Now, they were falling from a very high level, but at least they were going down. All of a sudden, deficits are skyrocketing and they’re about to explode out of control. Yet, we have no way to finance them. So interest rates have no place to go but way up. Not just a little up.”
Jones then wanted to know if Shiff thought there was a way for Trump to help America get out of this mess. Schiff says Trump should come clean on how the economy is really looking.
“The sooner he tells the truth, the better…I don’t think this market is going to roar back and make new highs.”
The other problem is Americans have the lowest savings rate in ten years. There is no money for the public to buy undesirable bonds that not even the Chinese will buy. Schiff also says that the social justice warriors need to take a break and focus on the bigger picture.
“Social issues need to take a backseat. If the economy crashes, if the market crashes, if we have a worse economy than the one that Bush left Obama, then none of the other stuff matters. Because we’re paving the way for somebody worse than Hillary Clinton.”
Trump is going to get blamed when the economy tanks because the media has already decided that they are on the side of socialism. When all of this happens, prepare for the free market (which we don’t have) to be blamed and prepare for the tax cuts to be blamed. This will pave the way for Communism. “I don’t think Trump can get out of dodge in time,” Schiff said.