Schiff: America “flat broke… living off this credit bubble..”

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Peter Schiff, Euro Pacific Capital –  accessed from ZeroHedge 4/172016

“It’s no way to know exactly the timetable, but obviously this economy is already back in recession, and if it’s not in a recession it’s certainly on the cusp of one…We could be in a negative GDP quarter right now, and I think that if the first quarter is bad the second quarter is going to be worse”

The last couple years we had a rebound in the second quarter because we’ve had very cold winters. Well this winter was the warmest in 120 years so there is nothing to rebound from.

“The problem for the fed is how do they launch a new round of stimulus and still pretend the economy is in good shape.”

“Negative interest rates are a disaster. It’s not working in Japan, it’s not working in Europe, it’s not going to work here. Just because it doesn’t work doesn’t mean we’re not going to do it, because everything we do doesn’t work and we do it anyway. It shows desperation, that you’ve had all these central bankers lowering interest rates and expecting it to revive the economy. And then when they get down to zero, rather than admit that it didn’t work, because clearly if you go to zero and you still haven’t achieved your objective, maybe it doesn’t work. Instead of admitting that they were wrong, they’re now going negative.”

“The United States, no matter how high inflation gets, we’ll do our best to pretend it doesn’t exist or rationalize it away because we have a lot more debt. America is broke, if you look at Europe and Japan even though there is some debt there, overall those are still creditor nations. The world still owes Europe money, the world still owes Japan money, but America owes more money than all of the other debtor nations combined…. we’re flat broke, and we’re living off this credit bubble and we can’t prick it….”

“The trigger that’s going to really send us into a higher gear is going to be the admission by the Fed that the economy is weak or the markets figure it out on their own. There’s not a lot of stimulus left, all they’ve got is potentially negative rates and a huge round of quantitative easing, and this thing is going to blow up in the Fed’s face.”

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Schiff is correct. Negative rates would be a disaster for the U.S., as it is (or will be) everywhere else it is being tried.

However, Schiff did not offer up a legitimate plan to get America out of this mess.

Here is the plan that Schiff is missing.  This plan eliminates vast swaths of debt at ground level – for American families, generates massive tax revenue gains and solid budget surpluses, reignites fundamental economic growth in America.  And restores economic liberty for all Americans..

The Leviticus 25 Plan 2017 –  $75,000 per U.S. citizen                                                   The Leviticus 25 Plan 2017 (1429)

 

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