Thursday, March 28, 2024

Economist Peter Schiff has warned that soon the United States will experience its largest economic crisis in history. He said it’s going to be much worse than the last one and that our currency is worth less because money is being given to banks for bailouts.

Peter Schiff Warns

Peter Schiff, an economist and gold bug, was on NTD News Monday. He talked about the U.S. economy and banking issues, claiming that the Federal Reserve Chairman Jerome Powell’s statement that the U.S. banking system is strong isn’t true – it’s actually a “house of cards” getting ready to collapse!

Schiff said that because of some mistakes made by the Fed (Federal Reserve Bank) since 2008, an even bigger bubble was created. The Fed caused the first bubble that led to the financial crisis in 2008 and then tried to cover up for these mistakes by making a new, larger bubble, so that people wouldn’t need to deal with the real consequences of their mistake. An economist shares this opinion.

“Basically, our bad choices have made the US’ economy worse, and now it is facing the worst crisis ever.”

Peter Schiff, an expert in banks and finances, believes the recent closures of Silicon Valley Bank and Signature Bank are the start of another economic crisis. He thinks people don’t want to put a name to it or remember what happened in 2008 because of how serious it was. Instead, he is warning everyone about what might be coming soon.

People are not taking the warnings seriously, but there’s a big financial crisis arriving soon. This financial crisis will be much bigger than the last one.

An economist says banks won’t be able to handle if there is a recession and lots of inflation at the same time. Basically, if prices go up and economy goes down, banks won’t make it!

The value of the U.S. dollar is going down because of inflation, so people are taking their money out of banks since the interest rates can’t make up for the loss. That’s what Mr. Schiff said, and it means that we have to be careful with our money.

When people want to get money from a bank, it isn’t there. So, the only way they can access their money is if the Federal Reserve (called “The Fed”) prints more money. But when The Fed prints new money, it decreases the value of all other existing dollars. This causes spiraling inflation and devalues the US dollar so that banks can be bailed out.

Schiff recently warned that when the Federal Reserve increased their balance sheet (amount of money) by almost $400 billion in two weeks, this is going to cause inflation. Inflation basically means that all US dollar owners and US dollar earners will get paid less because their money’s value is lowered due to the bank bailouts. So, Americans won’t only be affected as taxpayers but also as people who own or earn dollars.

When banks fail, everyone with a bank account will lose their money. However, currently the government is preventing most banks from failing, and this makes it likely that everyone who has a bank account will end up losing purchasing power instead. This is according to Peter Schiff’s opinion – do you agree? Let us know in the comments section below!

Pictures are taking from Shutterstock, Pixabay and Wiki Commons.

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