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The Unfolding US Financial Crisis Was Inevitable – Economist

Published 23/10/2023, 22:07
The Unfolding US Financial Crisis Was Inevitable – Economist

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  • According to Peter Schiff, the US is on the verge of an economic collapse.
  • Schiff linked the emerging financial crisis to the Fed’s actions in 2001.
  • The US economy was suffering the consequences of past decisions made by the Fed.

According to Peter Schiff, Chief Economist and Global Strategist at Euro Pacific, the US is on the verge of an economic collapse. Schiff linked the emerging financial crisis to the Fed’s actions in 2001, noting that the nation’s economy was suffering the consequences of past decisions made by the Fed.

The Chief Economist noted that he first wrote about the impending economic crisis in his book Cash Proof, published several years ago. In the book, he warned that the economic tipping point for the US had become a reality. According to Schiff, the US went from the world’s largest creditor to its largest debtor.

The Economist observed several indicators that did not look good at the time for the US economy, including a declining dollar and a drop in domestic manufacturing. Other factors Schiff identified included growing personal and corporate debts, noting that these factors would plunge the nation into an economic storm.

Several years later, the expert’s predictions are beginning to unfold, and the US is facing a dire situation as it battles a likely financial crisis. Some of the consequences he warned against are looking to manifest. They include significant rate hikes, loss of retirement benefits, and double-digit inflation.

Schiff’s recent post generated a conversation on X (formerly Twitter), as users offered ideas on the possibilities going into the future. One of his respondents, Siu, sarcastically cautioned against underestimating the government’s capability in “kicking the can down the road to space.” The Chief Economist acknowledged that but noted that the government has reached the end of the road, unlike ten years ago.

Clifford Sondock, President of Land Use Institute, left a question in response to Schiff’s post that was yet to be answered by anyone in the thread at the time of writing. Sondock asked what would happen when the cost of interest and principal of US Government Debt and the Deficit grows to over $1.5 trillion, and the US Treasury has to float over $1 trillion in additional Debt.

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