Peter Schiff’s economic analysis is generally sound. It’s safe to say that some people have lost faith in Schiff because a lot of what he has predicted hasn’t come true, such as $5,000 gold, hyperinflation, or an economic collapse greater than the Great Recession and Great Depression.
That said, it has likely come down to not thinking the Federal Reserve and central banks everywhere would fire so many bullets as they did, exacerbating the financial problems facing the world.
Schiff is not backing down from his prognostications.
Speaking in an interview with the Fox Business Network on Halloween, Schiff spooked viewers by warning that there will be a financial crisis and the stock market will crash because of the Fed raising interest rates.
“[The Federal Reserve] should raise rates, but the market is going to collapse as a result. This bear market is not going to end quickly,” he said.
“There is a lot of optimism about earnings and unfortunately that’s already priced into these stocks,” adding that these shares will collapse when rates impact corporate earnings.
The Eccles Building is still expanding the money supply, but at a slower pace than in previous years. This means that the expansion is unable to sustain the current bubble and illusion.
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