Thursday, January 23, 2014

Peter Schiff's Predictions and Warnings For Economy In 2014

Many families around the world are not only waiting and hoping for a complete economic rebound, but they are now wondering if this economic rebound will ever take place. Most people know that the shrinking numbers of unemployed citizens and increasing numbers of available jobs inside the United States are inaccurate and slightly manipulated. Now, most economists are paying attention to the link between the economic problems of the United States and how these problems are effecting the global economy and the stock markets.

The Business News Network interviewed Peter Schiff, CEO and Chief Global Strategist for Euro Pacific Capital, to talk about the direction of the global economy in light of the economic problems in the United States. The first problem Schiff addresses is how the majority of stock brokers on Wall Street are in denial. There is plenty of mixed data about an economic recovery, but the stock brokers remain hopelessly optimistic about this data. They claim the U.S. economy is a glass that is "half full", as they advise others to ignore all the bad elements. They fail to admit any good elements are the result of a government stimulus, also known as quantitative easing, and not from an economic turn around.

Some will argue that quantitative easing had been helping the economy grow, but Peter Schiff states this is only an illusion. Schiff states that quantitative easing does not offer long term solutions for legitimate economic growth. It is similar to placing a simple band aid over a serious bullet wound. He even points out that most of the jobs created in 2013 were temporary jobs, and that there were still more jobs created in 2012 than in 2013. Schiff explains that quantitative easing is stimulating the stock markets and real estates, but it is actually stifling the rest of the economy.

Peter Schiff also warns that more of the same issues are to still occur in 2014, as the U.S. Federal government will cut the stimulus by $10 billion. Chance are, the U.S. Federal government may just continue to repeat this cycle of bailing out the economy until they fully understand that these actions will keep the United States in a recession. If this cycle continues to repeat, the U.S. economy can implode worse than it did in 2008.

Finally, Peter Schiff recommends that anyone looking to rise above this flailing economy should invest his/her money in gold, silver, emerging markets, and in stocks and businesses that are in countries other than the United States. These actions can help individuals to help themselves, while the U.S. Federal government plans to cut back on quantitative easing and the strength of the U.S. economy continues to be exaggerated.

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