All of the latest Obamacare troubles has one contrarian investor comparing it to the Federal Reserve: failure.
Speaking in an interview with CNBC late last week, Peter Schiff, president and CEO of Euro Pacific Capital, explained that both the United States central bank and Obamacare will experience their downfall. Seizing on the several negative Obamacare headlines this month, including the soaring costs and layoffs, Schiff stated that this is expected when the state refrains from accepting market realities.
(It’s a good thing that the news network noted Schiff’s correct predictions about the failure of Obamacare.)
“After only four years of operation, there is now wholesale defection by insurance companies to abandon the Obamacare marketplace because they are hemorrhaging money faster than just about anyone predicted,” said Schiff. “To believe that any other outcome was possible would have been the equivalent of believing in the Tooth Fairy.”
Like Obamacare’s many disappointing policies, the central bank’s stimulus has been a failure, he says. Alluding to the lackluster gross domestic product, the $4 trillion balance sheet and the bubbles that are forming all across the stock market, Schiff believes it will end badly.
He stated that inflated prices in the real estate, bond and stock prices will have a negative outcome. They, Schiff warns, will also come under significant pressure once the Fed raises interest rates; if they ever do.
“Given how close the economy could be trending toward recession, can anyone seriously believe that the Fed will risk kicking a potential recession into high gear by actually delivering another rate increase?” Schiff said. “It should be clear that it won’t, but somehow the best and brightest on Wall Street appear convinced that it will.”
In the end, according to Schiff, the destiny of the Fed’s monetary policy is similar to the president’s healthcare reform: a failed experiment, and “a disaster hiding in plain sight.”
Also see: 9 new Obamacare tax hikes that will cripple the U.S. economy, Chart: Share of part-time workers continues to increase amid Obamacare and Study: 5 ways you’re paying more for health insurance.
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