Peter Schiff, a very famous author and an economist from Europac, said that America is heading into another depression period which will be worse than the Great Depression of 1930s. According to him, the numbers given out by the government are misleading and not accurate.
Peter Schiff Warns
Economist and author Peter Schiff has a warning for us: a new economic crisis will be underway soon, and it is one that could even be worse than the last Great Depression from the 1930s. In an interview, he said that inflation levels are going up thanks to the government spending too much money, which in turn makes it harder for America to pay off its debts. To sum up his point: this crisis might be even worse than before because of increased spending by the government.
The economist warned that soon there will be a large crisis or depression because our government keeps increasing the debt limit instead of trying to solve the problem. This new depression is going to be different from past ones because people are spending more money, and this leads to prices going up which means it’s harder for Americans to buy things with their money.
“The depression this time will be even worse than the one during the 1930s. Even if you don’t get laid off, your paychecks won’t make as much money since prices are going up.”
Mr. Schiff said that the Consumer Price Index (CPI), which is used to measure inflation, gives an artificially low result. He also said that if you double the numbers given by CPI, then it will give you a better idea of what’s happening with prices and that the real inflation rate should be about 10%.
Peter Schiff doesn’t think that high interest rates will help fix the problem of inflation. He says, “It’s like when you buy something – the prices are going up. So it is with borrowing money too; the price for taking out a loan is increasing, and that extra cost needs to be passed onto people in higher prices.”
Do you think Peter Schiff is right about the Great Depression coming soon? Let us know what you think by commenting below.
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