Economist Peter Schiff has condemned President Joe Biden’s inflation crisis and stressed that it is far worse than people realize.
Schiff warned in the March 12 edition of his radio show that “everyone sees the 1970s as the worst inflation of all time,” in fact the “inflation we’ve experienced in the previous twelve months is more than any other twelve-month period. The whole of 1970.” He further warned that the United States was on the verge of stagnation and even hyperinflation.
And in Schiff’s view, “we’re just getting started.”
He further claimed that “inflation is going to be the cause of the recession” because the government will be forced to stimulate the economy, thus creating even worse inflation. Schiff says. “And the amazing thing to me is that no one is asking any questions about it.”
Schiff will then work without question by criticizing the money’s “mainstream” for relying on the Fed’s interest rate hike: “What if you can’t ignite 7.9 percent inflation with a 1.5 percent interest rate?” He said. “Probably a quarterly point rate increase won’t cut it. Maybe it’s too late, too late. ”
The Federal Reserve has announced that it will raise interest rates by a “quarter-point, or 25 basis points” next week, according to CNBC. The outlet said the Fed “was under increasing inflationary pressure to raise interest rates even before the Ukraine conflict.”
Schiff paints a picture of what the world could be like if the Fed fails to cool record inflation and raises interest rates to 10 percent or more to go into the “Middle Ages.” “No one is considering the impact it is going to have, because it’s going to be catastrophic,” he said.
Schiff wondered how the “extra US economy” would respond:
“What will happen to the real estate market if the interest rate is ten percent, which means the cheapest mortgage you can get is twelve percent?” He asked.
Schiff answered his own question vaguely: “The real estate market will collapse.” After all, the stock market would “crash by definition if interest rates rise so much because stock prices are a function of interest rates,” he said.
The next domino will be the banking system, he said.
The final domino: “The government will go bankrupt. We have জাতীয় 30 trillion in national debt. ” Schiff emphasized the catastrophic events that would take place if the current inflation crisis spiraled out of control:
“It’s not just stagnant inflation, it’s going to be an inflationary depression, because it’s not just a stagnant economy that we will have, it’s going to be a disappointment and it’s not just high inflation, we can even get hyperinflation,” he said. “We’re going to get the worst of both worlds, yet no one in the mainstream is even thinking about the possibility of it happening.”
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