Is the United States economy booming under President Donald Trump? Peter Schiff doesn’t think so, and he believes the U.S. is headed for a 1987-style crash.
Speaking at the Vancouver Resource Investment Conference 2018 last month (the video was uploaded on Monday), which occurred just before the 8% market correction, Schiff discussed a wide variety of issues, including Trump, deficits, and the economy.
The most attention the speech is getting is Schiff’s latest prediction: the stock market will experience a stock market crash similar to what happened in 1987. What’s worse, says Schiff, is that investors are more optimistic than they were during the technology and dot-com bubbles.
“Investors have not been this optimistic since 1987,” he said. “They are even more optimistic than they were at the height of the technology bubble, the dot-com bubble, the new era. Of course, 1987 didn’t end well, right? We had a stock market crash, and there’s a lot about what’s happening today that reminds me about what was happening in ’87.”
The president keeps telling Americans that the economy is ballooning, citing various government data and the stock market. Schiff doesn’t buy it, and he even quotes Trump when he was a presidential candidate.
“The economy has not improved under Trump. We don’t have a booming economy. I mean, Trump keeps telling us we have a booming economy, but nothing is booming,” he stated.
“When Donald Trump was a candidate for president, he said that the unemployment numbers were phony. They were fake. They were a fraud. They were a con. He said the real unemployment rate is 30%, 40%. Now, every time there is an unemployment number that comes out, he’s tweeting about how great it is we have this record low unemployment and we should all give him credit for it.”
Schiff lamented on the Trump tax cuts, which would have been great if the Republicans slashed spending. But they didn’t, and now you’re going to have exploding debt and deficits.
And this is where he sees the similarities between today and in 1987.
“I believe the debt and inflation we have to create to finance the tax cuts will be a bigger drag on the economy than the tax cuts are a boost.
“Where there will be growth is in the budget deficits and that kind of is where I see some of the similarity now in the 1980s – 1987 – because these big budget deficits are going to be a big problem,” he explained.
“Rather than having continuous economic growth, I think the economy is going into recession. Now, I believe that had Donald Trump lost that election, the US would already be in recession. I think we were clearly headed to recession before he won. And when he won, he created this huge burst of misplaced optimism that probably postponed the onset of that recession by another year or two.”
The budget deficit will prove to have a crippling effect on the entire nation.
You can watch his entire remarks here:
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