Monday, May 28, 2012

Peter Schiff: Next President will preside over the economic collapse

On May 21st, Coast to Coast AM aired a special Financial Crisis show, with several different financial and economic analysts appearing during the four hour broadcast. During the second hour, investment advisor Peter Schiff appeared as a guest and laid out the inevitable path of America's financial future. Focusing primarily on our country's debt, and the unsustainabilty of the dollar to hold back inflation, Shiff predicted that no matter who wins the Presidency in November, that individual will be presiding over an economic crash that will make 2008 pale in comparison.  

George Norry: When I was 20 years old Peter, and that was a long time ago, I kept looking at the cost of living increase every year, and I used to say there is no way, 20 or 30 or 40 or 50 years from now, it can sustain this kind of growth rate. There is no way these things can continue to grow at this percent. Prices and everything else... It's got to collapse one day. Peter Schiff: Oh no, we don't have... I'ts going to happen. Whoever wins this presidential election is going to preside over this collapse. GN: Whether they want to or not. PS: We cannot postpone it anymore. The numbers are just too big. - Coast to Coast AM, May 21st

 Peter Schiff is an analyst and advisor with a strong track record of understanding economic trends. He predicted the bursting of the housing bubble well before 2007, and has spoken out continuously on the Fed's monetization and zero interest rate policies (ZIRP) over the past four years. These Fed actions have in his opinion, made the coming collapse much worse than 2008 because now inflation and the dollar are beyond repair. Later in the program, Peter Schiff was asked by the host if our politicians had the stomach to do what was necessary to bring our economic ship back on course. The proposed solutions to accomplish this entailed 20 years of dedicated austerity for the American people, and a paying off of the nearly $16 trillion in debt obligations by the government. His answer was a resounding no, as both politicians and the public are too bound by easy money, and the bureaucratic welfare state. A prime example of this was made when the subject turned to jobs in America, and how a record number of unemployed men were now applying for disability benefits since they were unable to find work in the economy. America's economy and the dollar are simply the least ugly horse in the glue factory at the moment, with pressure being focused more on Europe and the Euro due to their accelerating debt collapse. However, both the Federal Reserve and the Federal government are not using this respite to deal with our growing budget deficits, or in finding policies that create meaningful employment to create a real growth model not based on borrowing and monetization. Within one year, over one third of the $16 trillion dollars in borrowed money will be coming due, and with inflation accelerating due to years of near zero interest rates, the ability of the government to rollover or pay off that maturing debt is near impossible. Peter Schiff forecasts that the next President will preside over the economic collapse of the United States, and he believes it is now inevitable since our government no longer has the will or stomach to do what is necessary to avoid it.

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