Posted on 1. März 2023 in Allgemein
• Economist Peter Schiff has warned that the Fed could be fighting a “complete economic collapse”.
• He stressed that now „we’re going to see accelerating inflation,“ as measured by government indexes.
• Schiff noted that higher interest rates alone won’t be enough, and both consumer credit and government spending need to be cut back.
Economist Peter Schiff has warned that the U.S. Federal Reserve may face something it fears even more than fighting inflation: a complete economic collapse, another financial crisis or a sovereign debt crisis. In an interview with Greg Hunter on the USAWatchdog show, published Saturday, he said recent economic data shows „we’re going to see accelerating inflation“ and that higher interest rates alone won’t be enough to tackle it.
Schiff highlighted that the personal consumption expenditures price index rose 0.6% in January, stressing that this shows „the months of declining inflation are in the review mirror.“ He asserted if the Fed is serious about fighting inflation, then it needs to fight harder than it already has; rates must go up significantly and consumer credit needs to contract with lending standards rising so consumers can’t keep spending.
The economist also stated people need to stop spending money and instead focus on working, producing and saving if they want prices of goods and services not to rise further due to money being injected into the economy from consumer credit.
In addition, he emphasized that the federal government needs to get its own spending problem under control with significant cuts in order for true measures against inflation — such as higher interest rates –to work effectively without having their effects offset by excessive injection of money into circulation through government spending programs..
Schiff predicted ultimately the Fed will throw in the towel on its fight against inflation as it faces something even more worrying — a complete economic collapse or financial crisis — forcing them back into quantitative easing measures which can cause further problems down the line for households and businesses alike.