Hideo Nakamura Peter Schiff, a famous writer and economist of Europac, recently warned about the arrival of a new great depression in America. In an interview, he said that American official economic numbers might be deceiving us and that our country could experience an even worse depression than we did during the 1930s.
Peter Schiff Predicts the Worst Economic Crisis Yet!
Economist and author Peter Schiff has warned that a big economic crisis will happen soon. He believes it’s going to be worse than the Great Depression from the 1930s. The government is making this crisis even worse by increasing their spending, which raises inflation levels and lowers the quality of US debt. In an interview, Schiff said that it would be really bad if this problem isn’t solved quickly.
The economist warned that soon we’ll have a big problem due to constantly raising the amount of debt, instead of dealing with the root cause of it. When the amount of debt is kept increasing, it’s like avoiding the solution for this problem. Prices will keep rising and Americans will have way less money to pay for things they need. This situation might lead to the next Great Depression.
The depression is going to be even worse than the one in 1930s, since people won’t get any help from cheaper prices. Even if people manage to keep their jobs, they will still have a hard time because the value of their paychecks will still decrease.
“True Inflation is at 10%
Peter Schiff believes that the inflation rate is being understated. He says that if you double the official numbers (Consumer Price Index or CPI data), it would give us a better idea of how prices are actually changing. This means the true inflation rate right now might be around 10%.
Despite this opinion, Schiff thinks that raising interest rates won’t help with controlling inflation and we will have to face both of them. “Interest rates are just like the prices of other things,” he said. In addition, he pointed out that “as these rates go higher, it means that people will need to put more money on goods they buy resulting in the increase of their prices.”
Do you agree with Peter Schiff’s prediction that there might be a big depression soon? If so, comment below and tell us what you think!
