Peter Schiff, president of Euro Pacific Capital and former 2010 Republican presidential candidate, made another appearance on the Fox Business Network (FBN) on Monday where he discussed the real fiscal cliff, which isn’t the one being discussed ad nauseam in the mainstream media and in Washington between President Barack Obama and the Republican leadership.
According to the bestselling author of “Crash Proof,” the real fiscal cliff is the bond crisis that will transpire.
“If it [Federal Reserve] continues to print money, it’s going to be a bigger hell,” explained Schiff in the FBN interview. “If we avoid the fiscal cliff, we end up throwing the dollar over the currency cliff because we’re sending a message to the world that America will never pay its bills we’re just going to keep borrowing money until our creditors cut us off. That’s when interest rates skyrocket.”
He added that the United States government is “borrowing” $1 trillion a year, but Schiff noted that he uses the term “borrowing” loosely because it implies paying the sum back, which won’t happen.
The entire interview can be viewed below:
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