Peter Schiff Warns About the “Worst Economic Downturn Including the Great Depression”

, Alex Nitzberg, 2 Comments

image screenshot via Peter Schiff's Twitter page

image screenshot via Peter Schiff’s Twitter page

The Federal Reserve’s monetary policies have manufactured a “super bubble” that “ … may give us the worst economic downturn including the Great Depression,” economist Peter Schiff declared during an interview with Accuracy in Media.

He explained that low interest rates prop up the government’s feckless fiscal policies and generate  “ … really systemic structural problems in the economy … ” that “manifest themselves in bubbles that then burst.”

“ … the Fed’s policy does not work and has not solved our problems, it has simply exacerbated our problems, and … we’re gonna have a currency crisis, we’re gonna have a sovereign debt crisis and it’ll make the financial crisis of ’08 really look like the Sunday school picnic.”

Schiff, who publicly warned about the Great Recession before it actually occurred, said “…the problems I see now are basically the same problems I saw then … we never really had a solution, we never let the markets fix the mistakes that underlie the economy because it was short circuited by more bad monetary policy. So now we’re in even worse shape than we were going into the financial crisis. But it’s the same bad monetary policy that’s caused the problems … ”

Condemning the Fed’s manipulative monetary tactics, he asserted, “ … no matter how smart you are you can’t outsmart the market. You don’t want a centrally planned economy, you don’t want monetary policy made by a group of bankers … you don’t want interest rates fixed by a group of central bankers. It doesn’t work. It didn’t work when a politburo in the Soviet Union was fixing the price of bread, and it doesn’t work when a similar organization fixes the price of money.”

Asked why the media reject his economic predictions but accept the Fed’s statements, Schiff quipped, “… I think that people want to believe in the Fed, maybe just like little kids want to believe in Santa Claus.” “But people want to believe that things are gonna be ok, and they’re not.” He explained, “…people don’t want to give me the credibility that I deserve because then they have to deal with what I’m saying.”

Alex Nitzberg is an intern at the American Journalism Center at Accuracy in Media and Accuracy in Academia. Follow him on Facebook, Twitter and Instagram.


2 Responses

  1. Johnny Thorne

    July 12, 2016 12:49 pm

    Peter Schiff is the biggest skinflint, cheapskate and greedy man in CT. In 2012, he would not return the favor of a man who donated $500 to his 2010 campaign for US Senate. Even when urged to help another man’s campaign he refused to contribute a single cent, saying it was a bad risk. Schiff is a schmuck. Don’t believe a thing he says.

  2. Fred Zorch

    July 12, 2016 2:15 pm

    Even if what you say is correct, and I have no way of knowing, that does not necessarily besmirch his economic prognostications. His views on economics and politics should be allowed to stand on their own without a “poisoning the well” logical fallacy tarnishing the view. Personally, I find Peter to be one of the most erudite commentators on both economics and politics and I follow him closely. So don’t throw the baby out with the bathwater …

Leave a Reply

(*) Required, Your email will not be published