Peter Schiff: I dont think Obama is going to finish his second term without the bottom dropping out. And stock market investors are oblivious to the problems. Schiff charged Washington with cooking the books on its latest GDP and inflation figures. He cites the governments recent move to raise GDP 3% by including items never calculated before and that no other country on the planet counts. These include such intangibles costs and royalties from books, magazines iTunes song and movies. The Financial Times reported this strange maneuver as the U.S. Economys Hollywood Makeover. Thats what the government does, Schiff said. Whenever they dont like the results, they change the methodology for calculating those results. Maybe some of our creditors will be dumb enough to believe the hype, Schiff added. The fact is, Schiff said. Were broke. We owe trillions. Look at our budget deficit; look at the debt to GDP ratio, the unfunded liabilities. If we were in the Eurozone, they would kick us out. Schiff points out recent market gains, with the Dow recently setting record highs and remaining above 16,000, is yet another lie giving investors a false sense of security. Its not that the stock market is gaining value... its that our money is losing value. And so if you have a debased currency... a devalued currency, the price of everything goes up. Stocks are no exception, he said. I think we are heading for a worse economic crisis than we had in 2007, Schiff said. Youre going to have a collapse in the dollar...a huge spike in interest rates... and our whole economy, which is built on the foundation of cheap money, is going to topple when you pull the rug out from under it.
Posted on: Thu, 06 Mar 2014 01:00:38 +0000
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