Economist Peter Schiff has warned that the U.S. economy is headed for a tragic ending. “We’re going to have a dollar crisis and a sovereign debt crisis,” he stressed, cautioning that the Federal Reserve is “going to print money until the dollar collapses.” He added: “I think that day of reckoning is at hand.”
Peter Schiff Foresees ‘Tragic Ending’
Schiff explained that the current inflation we are experiencing has its origin in the 2008 financial crisis. “What the government did in response to that crisis — QE1, QE2, QE3 — all of that, plus what we did during Covid, that is the source of all this inflation. And it’s going to continue to get worse as long as we continue to run these massive deficits,” the economist explained.
Noting that the U.S. is running annual budget deficits of around $2 trillion and its national debt continues to increase, he cautioned:
This is going to lead to much higher inflation in the future than what we’ve experienced in the past … I think inflation is going to be a much bigger problem in 2024 than it was in 2023.
“Interest rates are a price. And it’s an important price for a lot of companies, just like labor, and rent, and raw materials, companies borrow money to conduct their business, to make capital investments, to expand. A lot of these companies have taken up debt over the years and now the cost of servicing that debt has risen sharply,” the gold bug continued.
Schiff also warned about the collapse of the USD. “You can already see the world is trying to divest itself of the dollar. There’s a big movement to look for alternatives to the U.S. dollar. They’re there and that’s happening,” he emphasized, predicting: “As our trading partners move away from the dollar, the dollar is going to fall very fast. Prices are going to rise much faster than they have been and at some point, it’s going to spiral out of control.”
The economist concluded:
“I think that day of reckoning is at hand. I don’t know that it’s tomorrow, but it’s coming sometime soon,” he clarified.
Last week, Schiff similarly warned about a massive crisis and a rush to get out of the U.S. dollar. He has repeatedly cautioned that a U.S. dollar collapse is inevitable. In July, he advised everyone to get out of the dollar now, emphasizing that the Federal Reserve is wrong about its recession outlook. Last month, he said the U.S. economy will experience a “full-blown financial crisis” before the Fed reaches its inflation target.
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