Schiff: 2/3 of America to Lose Everything Because of This Crisis
By MONEY MORNING STAFF REPORTS
A record-breaking stock market is distorting a frightening reality: The U.S. is being eaten alive by a horrific cancer that will ultimately destroy the economy and impoverish the vast majority of its citizens.
That’s according to Peter Schiff, the best-selling author and CEO of Euro Pacific Capital, who delivered his harsh warning to investors in a recent interview on Fox Business.
“I think we are heading for a worse economic crisis than we had in 2007,” Schiff said. “You’re 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.”
Schiff says that, despite “phony” signs of an economic recovery, the cancer destroying America stems from a lethal concoction of our $17.2 trillion federal debt and the Fed’s never ending money printing.
Currently, Yellen and The Fed are buying $65 billion per month of Treasury and mortgage bonds and will increase or decrease this number as they see fit. According to Schiff, this “exit strategy” is not credible and will unravel.
Eventually interest rates will rise… and when they do, Schiff says, stocks will tank and bonds dip to nothing. Massive new tax hikes will be imposed and programs and entitlements will be cut to the bone.
Editor’s Note: As a service to our readers, we’ve arranged a way for you to get a copy of Peter Schiff’s best- selling book, The Real Crash: How To Save Yourself And Your Country, for free, including shipping. The book shows in plain language exactly what economic dangers ordinary Americans face right now and how you can protect yourself. Please go here for your free copy.
“The crisis is imminent,” Schiff said. “I don’t think Obama is going to finish his second term without the bottom dropping out. And stock market investors are oblivious to the problems.”
“We’re broke, Schiff added. “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 that the market gains experienced recently, with the Dow first topping 17,000 on its way to setting record highs, are giving investors a false sense of security.
“It’s not that the stock market is gaining value… it’s 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. More>
From B Harmon Contributor:
The economy is lining up with Bible prophecy more every day. John the revelator, by inspiration from Jesus Christ, prophesied about the state of our economy in the last days.
Can Revelation 6:5-6 be any plainer? ‘And when he had opened the third seal, I heard the third beast say, Come and see. And I beheld, and lo a black horse; and he that sat on him had a pair of balances in his hand. And I heard a voice in the midst of the four beasts say, A measure of wheat for a penny, and three measures of barley for a penny; and see thou hurt not the oil and the wine’
The black horse foretells that future world wife famine of death and starvation for millions. It is already evident that the rich are getting richer and the poor are getting poorer. I believe that there will be a catastrophic division of the haves from the have-nots. While the rich live the life of luxury, the rest of the world will see its blackest hour of depression.
Not only are these things coming – they are here! Is it unreasonable to think that Mr. Schiff is right on target with his prediction of a crisis in 2014? I think so but now more than ever, we must seek G-d’s word for direction and guidance and keep our eyes fixed on Jesus. God Bless America….
Luke 21:28 (NIV) 28 When these things begin to take place, stand up and lift up your heads, because your redemption is drawing near.”