Peter Schiff: Expect an Economic Crisis Infinitely Worse Than 2008 (Video)

By: The Voice of Reason |

Want to understand why people MUST begin to prepare for the worst economic crash in global history. Here it is as plainly as it can be put, with tons of supporting links at the bottom. In the following video, AMTV interviews Peter Schiff after the Fed meeting, and as an enormous fan of Peter’s for over a decade, as well as a client of his, I can’t help but laugh when only :18 into the interview Peter gives his first eye roll. Frankly, I don’t know how the man keeps his eyes in their sockets without them rolling right out. He’s always swimming upstream against the mainstream media outlets, and it has to be tiring. 

The main reason I feature so many Peter Schiff videos is so that people who don’t regularly follow economic issues or trends can get the information they need in a very simple to understand language. Peter is extraordinarily gifted when it comes to making a topic that most people consider too boring or to too complex to follow, very simple to understand. It’s important people understand, because they need to prepare. A crash like no other crash in world history is coming. Peter himself has said: The Collapse of the U.S. Dollar Will Be the Single Biggest Event in All of Human History. That’s not a joke. Not at all.

For the naysayers who think that the current stock markets at their record highs are a sign of economic health, within the first 3:00 of the interview below, Peter gives a high level breakdown of why the U.S. Dollar absolutely WILL collapse, taking the stock markets and everything else with it. The record highs are all fake. The stock markets have been artificially propped up by money from central banks. Even IF investors sold their holdings today for record gains, unless they put those gains into something not denominated in U.S. dollars, those same gains won’t be worth the paper they’re printed on when the Dollar goes bust, and THAT is what Americans are NOT grasping.

In the first 3:00, Peter speaks very high level, so below I add the supporting information for readers. He says:

There will be no more rates hikes this year at all. Expect a cut back to zero

WHY: The only time the Fed has raised rates in 7 years was in December of 2015, and they only raised them .25%. After just a tiny rate hike of .25%, U.S. stock markets had the worst opening in the history of the stock markets in 2016. The economy is far too weak to handle a rate hike regardless of the rhetoric people are hearing. That was the proof.

The endgame for the U.S. economy is oblivion. 2008 was a minor correction compared to the eventual collapse of the U.S. Dollar.

WHY: After the dot.com bubble burst in 2000, Fed chairman Alan Greenspan-led the Federal Reserve through a series of interest cuts that brought down the Federal Funds rate to 1% by 2004. The bubble created by those years of cheap Fed money at 1% resulted in U.S. households losing a total wealth of almost $14 TRILLION in the 2008 crisis. Stock markets fell by almost half for losing $7.9 trillion, and the housing market lost $6 trillion.

FAST FORWARD TO TODAY: We’ve had 7 years of interest rates at 0%. As a result, there is more than just a housing bubble this time. There’s a stock bubble, a housing bubble, a bond bubble, a student loan bubble, and I could go on. As Peter explains, the Fed only has ONE option at this point: Continue to fake it for as long as possible by printing more money (otherwise known as “quantitative easing”), or let the whole system come crashing down.

HERE IS THE REALITY: The world has caught on, and the gig is up. Under Obama’s stewardship, the U.S. national debt has gone from $10 Trillion, to what will be $20 Trillion by the time he leaves office, with nothing more than 100 MILLION Americans out of work, and 50 MILLION in poverty and on food stamps.  That’s what cheap money bought for us. It was all “borrowed” cheap money too, making it infinitely worse, and the world is tired of lending.

The only reason countries still lend us money, is because as the World Reserve Currency, the Dollar is needed to settle global trades. When that need is gone, THAT is when the Dollar will collapse. THAT is why countries have been turning away from the Dollar at record pace. When enough of the world no longer settles their trades in U.S. Dollars, a process well underway I might add, THAT is when the ponzi scheme goes boom, and THAT is when we’ll witness what Peter Schiff describes as: The Single Biggest Event in All of Human History.

Sadly, the only people who don’t know a crash of biblical proportions is coming to the U.S., are the U.S. citizens, because our media and our leaders are so dishonest. Need proof the world is turning from the Dollar? Ten years ago almost 75% of all global trade was in U.S. Dollars. Today that numbers is around 37%, and dropping like a rock. It’s “IF” the U.S. Dollar collapsed, it’s “WHEN.” Listen to Peter:

Samuel Bryan at Schiff Gold writes:

The Federal Reserve stayed pat on interest rates in its most recent meeting, but speculation continues to percolate that the central bank will possibly raise rates in September.

Peter Schiff has been saying for months that the Fed won’t raise rates. He reiterated this on his most recent podcast. (Scroll down to listen to the full podcast.)

“The Fed continued to say that they believe the economy is evolving in a way that will warrant gradual rate hikes. And of course, by gradual they mean no more rate hikes…So they raised rates once in December and they haven’t raised rates since. That’s about as gradual as you can possibly get. I mean, if a snail was raising rates they would have blown past Janet Yellen…I think, again, the rate-hiking cycle ended when they raised rates. It began when they started talking about tapering. That was the whole rate cycle, and whether people want to admit it or not, we are now in the easing cycle.”

In fact, Peter has said on numerous occasions the next move for the Fed will be lowering rates back to zero and launching another round of quantitative easing.

If the actions of central banks in the rest of the world serve as any example, Peter will certainly be proven right because the world is awash in QE. In fact, Reuters reported that the amount of quantitative easing is at record levels:

“Eight years after the global financial crisis and years after the US and British central banks stopped their quantitative easing bond-buying programs; the amount of QE stimulus being pumped into the world financial system has never been higher. The European Central Bank and Bank of Japan are buying around $180 billion of assets a month, according to Deutsche Bank, a larger global total than at any point since 2009, even when the Federal Reserve’s QE program was in full flow.”

And amount of QE is expected to increase even further.

All of this extreme central bank monetary policy is one of many reasons to buy gold. Download SchiffGold’s Free White Paper: Why Buy Gold Now?

ABN Amro analysts expect the European Central Bank to increase quantitative easing to 100 billion euros per month and extend the program by nine months to the end of 2017. JP Morgan predicts the BOJ will up its QE by 25% to $960 billion annually. Just yesterday, Japanese Prime Minister Shinzo Abe announced a $265 billion economic stimulus package. The plan will reportedly include 13 trillion yen in “fiscal measures.

The ECB and BOJ aren’t the only central banks jumping the QE train. With Brexit a reality, many analysts also expect the Bank of England to resume its bond-buying program. Barclays projects up to $197 billion in extra easing. As Reuters pointed out, the global economic outlook doesn’t show any signs of improving and that means QE will likely continue indefinitely:

“These are among the most aggressive forecasts. But with world growth struggling to avoid an effective recession and inflation still below official target rates in many countries, central bank balance sheets are about to get bigger.”

ZeroHedge put it more bluntly:

“The monetary policy beatings will continue until morale improves.”

It seems highly unlikely the Fed will swim against the swift-running QE river and actually raise rates. Peter’s projections appear a whole lot more realistic. Here is Peter again in his podcast!

THE VOICE OF REASON is the pen name of Michael DePinto, a graduate of Capital University Law School, and an attorney in Florida. Having worked in the World Trade Center, along with other family and friends, Michael was baptized by fire into the world of politics on September 11, 2001. Michael’s political journey began with tuning in religiously to whatever the talking heads on television had to say, then Michael became a “Tea-Bagging” activist as his liberal friends on the Left would say, volunteering within the Jacksonville local Tea Party, and most recently Michael was sworn in as an attorney. Today, Michael is a major contributor to www.BeforeItsNews.com, he owns and operates www.thelastgreatstand.com, where Michael provides what is often very ‘colorful’ political commentary, ripe with sarcasm, no doubt the result of Michael’s frustration as he feels we are witnessing the end of the American Empire. The topics Michael most often weighs in on are: Martial Law, FEMA Camps, Jade Helm, Economic Issues, Government Corruption, and Government Conspiracy.