Peter Schiff sees profound changes ahead concerning the current monetary system of fiat currency debt.

Peter Schiff has been remarkably accurate in predicting recessions and financial crises spanning three decades, which makes Peter Schiff sees profound changes ahead view worth an ear.

Peter Schiff predicted the financial crisis of 2008 and the dot-com bubble. He was critical of Alan Greenspan’s internet bubble of the 90s and warned of the internet dot-com bubble burst, which did play out. Peter Schiff was also skeptical about the reflationary policies of the Fed. He warned about the distortion of excessive monetary easing and market bubbles.

Peter Schiff has been remarkably accurate in predicting recessions and financial crises spanning three decades

WEALTH TRAINING COMPANY

Peter Schiff also warned about the housing bubble of 2007 and went on record saying that the economy would experience the worst recession since the great depression with double-digit unemployment. Peter Schiff correctly forecast the trillion-dollar deficits and that housing prices would drop, 30 to 40%.

“We were able to kick the can down the road because central banks have managed to reflate the bubbles” said Peter Schiff. 

Fast forward to today and Peter Schiff sees profound changes ahead as he warns about the central banks inflating bigger bubbles than the previous ones that popped

“The coming crisis is going to be much worse than I envisioned, the dollar collapse is going to be that much more spectacular” he said. 

Peter Schiff then fires a shot across the bow of academic economists. 

“People start losing common sense when they start learning economics” he said.  “Textbooks are inaccurate” he added. 

“They believed that quantitative easing QE one was all they would need. I said that they would do it again repeatedly” said Peter Schiff. 

Peter Schiff sees a US dollar crash where he warned that “there will be more QEs than Rocky movies”

The coming crisis is going to be much worse than I envisioned, the dollar collapse is going to be that much more spectacular

PETER SCHIFF

Peter Schiff sees profound changes ahead, where there will be a crisis of confidence in the world reserve currency, the US dollar

“This monetary roach motel can only end in a US dollar crisis” said Peter Schiff. 

“American is going to keep on printing more money until money has no value.

We are going to keep on going into debt until our creditors realize that they are never going to get paid” he said.

Peter Schiff sees profound changes ahead with sovereign debt and dollar crisis building into a financial tsunami

“Economically, the economy has not grown,” he warned. 

“We haven’t had a dollar crisis and sovereign debt crisis but that is coming” said Peter Schiff 

“There hasn’t been a fiat monetary system that has survived. Money has got to have real value” said Peter Schiff. 

they don’t want to say something negative that could hit investors’ confidence. They don’t want to put off investments and spending by telling the public that recession is coming” – Peter Schiff

The recycling of treasuries that fuels loans to buy foreign-made goods is also a feature to Peter Schiff sees profound changes ahead view

“The world produces the stuff for Americans to consume we can’t pay for it. So, they lend us money to buy what they make. So, they save and produce, and America borrows and spend” he said.

But another part of the story is that Americans also invest, and some of that is with borrowed money. More than half of US households have some investment in the stock market.

“A majority (61%) of non-Hispanic white households own some stock, compared with 31% of non-Hispanic blacks and 28% of Hispanic households. Median investments vary here as well: Among whites, the median is about $51,000. By comparison, the median for black families is $12,000, and for Hispanic families, it is just under $11,000”. So, when the stock market rises household wealth increases, which spurs spending. 

But there is also a flaw to Peter Schiff’s sees profound changes ahead of view, which even Peter Schiff acknowledges

Until there is external demand for US dollars with the US dollar the world’s reserve currency and US hegemony intact, the fiat debt system, with us a dollar on the throne, has millage.

“It is the reserve status of the US dollar that has enabled this, there is no pressure on Congress to cut spending or the deficits” said Peter Schiff. 

Peter Schiff also believes that the Fed doesn’t believe that QE to infinity is sustainable or that the interest rates can rise. 

“It is more likely that they don’t believe it and that they are lying because they are wrong, so often it is hard to believe that it is just random. You can’t be that wrong consistently. So, it is more likely that they are wrong on purpose” said Peter Schiff. 

Peter Schiff explains that “they don’t want to say something negative that could hit investors’ confidence. They don’t want to put off investments and spending by telling the public that recession is coming”.

He adds, “Fed is afraid of actually causing the recession that it is worried about by admitting that they think it is coming”. 

“So,they would rather deny that they see a problem and hope that false confidence means we don’t get a recession” said Peter Schiff. 

But Peter Schiff also notes that inflating home prices makes it easy for Americans to, pledge their homes as collateral.

Interest on the national debt is around 400 billion a year that’s because rates are at zero but if interest rates returned to normal maybe four-five percent then it would be impossible to pay the interest” – Peter Schiff

Peter Schiff sees profound changes ahead view is based on a world with near-zero interest rates throughout our lifetime

Peter Schiff argues with debts sky-high the private and public sectors cannot shoulder higher rates. 

“Interest on the national debt is around 400 billion a year that’s because rates are at zero but if interest rates returned to normal maybe four-five percent then it would be impossible to pay the interest. “Interest payment alone would exceed what the government collects in taxes” said Peter Schiff. 

“Only thing between American and insolvency are these artificial interest rates” he added.

“Printing money is the same as default when ultimately the money that you print doesn’t buy you anything” he warned. 

He thinks America should do the right thing by restructuring its debt and offer to pay 20 cents on the dollar to people who own treasuries. But that is a crazy idea, bearing in mind that pension funds would collapse, leaving retirees in poverty. Not so thinks Peter Schiff. 

“Dollar is going to lose more than 80% of its purchasing power when those long-term bonds mature” said Peter Schiff. So maybe that is why we see forced optimism in stocks.