“It’s going to be Horrific” – unless……

Posted by Peter Schiff & Michael Campbell

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*Note: Peter Schiff Michaels Guest again on Money Talks this weekend as his Interview Oct. 23rd was cut short.  Listen Live (Saturday @ 9:30) HERE

Michael Campbell: Peter you were worried about the US dollar and real estate in 2006, 2007, well in advance of 2008. Where do you see us at right now in the US economy and the global economy?

Peter Schiff: Well the US economy is a complete disaster in the aftermath of the 2008 financial crisis. The crisis was caused by bad monetary and fiscal policy that artificially inflated a real estate bubble and we had a federal reserve, that kept interest rates too low. We had a congress that subsidized the extravagant borrowing on the part of home buyers and we had a thorny economy where we borrowed too much, we didn’t produce enough and the government through its monetary and fiscal policy is refusing to allow market foreces to correct the underlying imbalances in the US economy.The economy is in worse shape now than it was in 2008 the only thing propping us up is foreign buying of US dollars. China, Japan, South East Asia are buying up treasuries, buying our dollars and artificially sustaining our economy and that is what the problem is with the global economy. The fact that they’re propping up the US economy is a huge burden on the rest of the world and the longer they prop us up, the more pain we are going to be spreading throughout the world. The key to global economic growth is for the world to allow the dollar to fall and to stop lending money to the US government.  To stop buying US treasuries, the US mortgage backed securities. To force the American government to stop spending money, to force the American citizens to start saving instead of spending and to force congress to reform our laws so we can go back to a nation of productive citizens instead of a bunch of reckless spenders.

MC: To solve a debt crisis by getting into more debt? That just doesn’t make any sense intuitively.

Peter Schiff: The worst part about it is it’s now the government that’s going into debt on behalf of American citizens who are already up to their eyeballs in it. We have a currency crisis coming in the United States and we have a sovereign debt crisis. It’s all going to hit some time in the next couple of years and it’s going to be horrific. I mean far more is going to be lost when the dollar collapses and the bond market collapses. When we saw this first in the real estate bubble or the dot com bubble.

MC: What are the ramifications for your clients in this kind of an environment. What kind of advice do you give them?

Peter Schiff: Well I’m telling my clients to get out of the dollar for ten years. We’ve been buying gold, silver, energy agricultural commodities oil and gas. I’ve been investing heavily in Asian economies South East Asia China Singapore Hong Kong and we’re investing in Scandinavia. We’re investing in Australia in New Zealand and up your way in Canada. We are doing whatever we can to avoid the US. As I said I think it’s a train wreck. And a lot of people will lose a lot of money and wealth. I think most Americans are going to get wiped out because we are going to destroy the value of the dollar.

You can read more of Peter Schiff’s commentary on his Euro Pacific Capital website HERE