President Donald Trump, Republicans, and Democrats have no intentions to slash spending, cut entitlements, and impose fiscal responsibility on Washington. The budget deficit is expected to top $1 trillion, the national debt is surpassing $21 trillion, and unfunded liabilities and expenditures range about $200 trillion.
With the stock market becoming bearish and the Federal Reserve raising interest rates and unwinding its balance sheet, how can you expect the national economy to survive?
Peter Schiff thinks the worst part of the situation is that nobody is preparing for the long-term pain that is coming.
Speaking on the latest episode of the “Peter Schiff Podcast,” the contrarian investor warned that the short-term pain is going to happen but then the long-term pain is going to get a whole lot worse.
He said on his show:
“There would be some short-term pain that would deliver some long-term gain. How about if the Fed normalizes interest rates and lets the bubbles collapse, lets people lose money, lets the markets restructure? That is short-term pain for long-term gain. That is what a real free-market recession is like. Let the government get out of the way. Let the central bankers get out of the way, and let the free market correct the imbalances and create a good foundation where we can build a lasting, sustainable, viable recovery.”
Schiff added that the debt is a ticking time-bomb waiting to explode:
“This is a time bomb. The debt keeps going up. Every day we’re closer to the crisis. Every day there is more and more debt, right? And so, every day that goes by, we’re one day closer to the debt imploding.”
The solution? Get ready.
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