‘This is the beginning of the greatest financial crisis in US history’: Peter Schiff makes dire predictions to Boom Bust
After suffering the worst stock market crash since 1987, the US Federal Reserve has announced a $1.5 trillion injection to ease strained capital markets. It is the biggest action by the Fed since the 2008 financial crisis.
RT’s Boom Bust is joined by the CEO of Euro Pacific Capital Peter Schiff to find out if the Fed’s actions are enough to stop the stock market bloodbath.
“The bull market is clearly over, just look at the numbers,” says the veteran stock broker.
“This is the beginning of the greatest financial crisis in US history,” Schiff says, adding “The financial crisis of US of 2008 will pale in comparison as with the severity of this recession. We are going to have a much greater recession than the one that we had in 2008.”
According to the expert, the difference is that “this one is actually going to have inflation; we are going to have rising consumer prices and a falling dollar which is going to make it so much worse than what we have experienced 10-12 years ago.”
Schiff explains that the coronavirus is just a pin while the debt bubble is the problem. The virus has not only pricked the stock market bubble and the crypto bubble, but it has also punctured the bond market bubble.
“So, now we have to deal with the consequences of the disease that the Fed inflicted us with. And unfortunately the Fed’s cure for the coronavirus is going to be fatal for the economy.”
The strategist says that the fiscal stimulus is going to make the situation worse.
“The US is broke, there is no money to stimulate the economy, and all we can do is print money… The bond market is imploding because there is too much debt.”
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