Economic Collapse: Peter Schiff Delivers Grisly Warning for America

Peter Schiff, the top Libertarian economic forecaster, believes the U.S. economy is on the verge of economic collapse.

In response to the coming recession, Schiff told RT on Friday that he expects layoffs will start sometime this year. (Source: “Fed Hoping to Will Recession Away With False Optimism,” YouTube, March 11, 2016.)

The recession, Peter Schiff argues, started late last year. Whoever succeeds President Barack Obama will inherit an even bigger recession than the one Obama inherited from his predecessor, President George W. Bush.

“Normally, employers don’t lay people off because they think a recession is coming,” Schiff, the head of Euro Pacific Capital, said. “When they get surprised by a recession, that’s when they start to lay off. So, I think the layoffs are gonna come. They’re gonna come this year and you know there’s only so many part-time workers that American businesses are gonna be able to hire.”

The world’s largest economy added a better-than-expected 242,000 jobs in February, while the unemployment rate held steady at 4.9%, matching an eight-year low, the Labor Department reported earlier this month. Economists were expecting 190,000 new positions and no change in the jobless figure.

Schiff noted that corporate earnings are under pressure, retail sales are collapsing, and jobs are going to be the final factor to break.

The three major U.S. stock indexes are still in the red and have been since the beginning of the year, trying to pare losses. Meanwhile, gold is 2016’s best-performing investment thus far, as investor concerns over a global economic slowdown continue to intensify.

Schiff blasted the U.S. government and the Federal Reserve for not acknowledging the existence of a recession.

“The government doesn’t admit you’re in a recession until it’s almost over,” he said. “They’re hoping to create a bunch of false optimism and maybe will the recession away.”

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