Economist Peter Schiff Warns of Dire Financial Crisis and Much More Serious Recession – Bitcoin News

Economist Peter Schiff has cautioned of a much more severe economic crisis and recession than what the Federal Reserve admits. “The economy is not only going to weaken, but it will weaken much more than what the markets expect,” the economist stressed.

Warning From Peter Schiff

Economist Peter Schiff has raised multiple issues this week regarding the US economy. Speaking On the Federal Reserve’s attempts to reduce inflation, he commented:

Inflation is not going to decrease, it is a fact. It is only going to grow. The economy is not only going to be weaker, but it will also be weaker than what the markets expect.

“The actual cause of inflation is that the US government and the Federal Reserve act in tandem, where the US government spends money it doesn’t have, and then the Fed prints money for the government to spend; that is why we have inflation,” he clarified.

In an interview with Fox Business on Wednesday, Schiff commented on Federal Reserve Chairman Jerome Powell’s statement that disinflation “has begun” but it will take some time. Schiff argued: “That disinflation is only temporary. Even if he doesn’t fully grasp the significance of it, he knows that he can.”

Highlighting that the government has continued to spend billions of dollars each month, Schiff remarked that, if the Fed chair believes that a slowdown in the economy will dampen inflation, he could be wrong. The gold bug opined:

That’s really going to fan the flames of inflation. The real danger is that you end up in a much more serious economic recession and financial crisis than the Fed acknowledges.

“And then the Fed tries to prop up the economy to try to mitigate or combat the economic crisis by creating even more inflation,” he was explicit.

This was not the first time Schiff has raised concerns about the US economy. Late last year, he said that inflation was going to get worse and that the US dollar would face one of its worst years in history. In October he predicted that the dollar would collapse and that the US would default on its debts in the coming year. He also forecasted that the Federal Reserve’s actions could lead to market crashes and severe recessions.

Do You agree with Peter Schiff On the US economy? Let us know via the comments section.