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28 Nov, 2019 11:02

US headed for ‘economic disaster’ worse than in 2008, Peter Schiff tells Boom Bust

US headed for ‘economic disaster’ worse than in 2008, Peter Schiff tells Boom Bust

US President Donald Trump said a deal between Washington and Beijing is more likely, following a phone call between the negotiators of both countries on Tuesday.

RT’s Boom Bust brings in Peter Schiff of Euro Pacific Capital to talk about the possibility of reaching a preliminary deal in a trade war that has dragged on for 16 months.

“I don’t think that Trump is trying to make a deal,” the veteran broker says, explaining that “Trump just wants the stock market to go up.”

As long as the stock market is going up “he couldn’t care less about a deal with China,” Schiff continues, suggesting that “if the stock market started to tank he might feel some type of pressure to actually deliver a deal…”

Schiff points out that the money-printing will continue “as far as I could see, and that’s what is driving stocks and will continue driving stocks until something causes that to change.”

Another problem, according to Schiff, is that the American consumer is deep in debt, and the “only reason he could spend is because the Fed is keeping rates low enough.”

He explains that credit continues to flow despite the lack of legitimate savings to finance it. “So, this whole house of cards is going to come tumbling down and the consumer is going to be right in the center of that.”

All these factors combined mean that "the US is headed for a worse economic disaster than the one we had in 2008,” according to Schiff.

For more stories on economy & finance visit RT's business section