Peter Schiff sees a financial crisis underway, which will only reach public awareness if and when a 2008 Lehman Brother-type bankruptcy hits the mainstream headlines.
The Goldilocks narrative is that inflation is under control as restrictive monetary policy has successfully engineered a soft landing.
“Peter Schiff sees a financial crisis underway, which will only reach public awareness if and when a 2008 Lehman Brother-type bankruptcy hits the mainstream headlines”
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But the facts indicate the contrary, with the worst bear market in treasuries in its 250-year history in a backdrop of rising household delinquencies and bankruptcies. Meanwhile, the current geopolitical situation is worse than the 1962 Cuban Crisis, with more than 2,000 nuclear missiles on hair-trigger alert. The current situation represents an unprecedented crisis and challenges from all angles at a time when there is a deficit of intelligible global leadership.
Peter Schiff sees a financial crisis underway, and he could be dead right, bearing in mind his track record of predicting the 2008 financial crisis
“Nobody understands that this crisis has started. But believe me, it has. This was the way the 2008 financial crisis started. It didn’t just happen when Lehman Brothers went bankrupt,” he said.
“By the time Lehman went under, everybody knew there was a crisis. But it was obvious long before that.
“Nobody understands that this crisis has started. But believe me, it has”
That’s the reason it went under. It didn’t just go out of business out of the dark. It didn’t just happen. The reason that Lehman Brothers, Bear Sterns, Fanny and Freddy, AIG, and all these companies went under was their exposure to the mortgage market. That exposure was obvious to me for years, but particularly in 2007 when the subprime market blew up. That was the point where even the village idiot should have been able to figure out what was coming. The problem was most people on Wall Street weren’t even smart enough to qualify as the village idiot, so they still couldn’t figure it out,” said Peter Schiff
“This is a bottomless pit. This is a self-perpetuating collapse that we are witnessing that is going to gather momentum” – Peter Schiff
The perma gold bull Peter Schiff sees a financial crisis underway, which nobody talks about, and he is right
“Well, just go back to the summer of 2008. Nobody was talking about it,” said Peter Schiff.
He believes this crisis is much bigger because the problems driving it are much bigger. Indeed, it has gone from a subprime 2008 credit crisis to a crisis, in the prime collateral market, US treasuries. Think about it. If US paper is the cleanest shirt, then what about other sovereign debts?
Newsweek recently published an article titled “America Is Heading for an Interest Payment Crisis.” Peter noted that at least they’re writing about that, but they still miss the root of the problem. It’s not just the interest. It’s also the principal.
“In other words, it’s a Ponzi scheme,” he said.
Peter Schiff sees a financial crisis underway because higher yields don’t make treasuries more attractive
“This is a bottomless pit. This is a self-perpetuating collapse that we are witnessing that is going to gather momentum,” he said.
He thinks the future of the US looks more like Argentina than Japan.
But our greatest fear is that we could see nuclear war before a USD collapse. We beg to be wrong.