{"id":18893,"date":"2023-03-19T02:18:52","date_gmt":"2023-03-19T02:18:52","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/economist-peter-schiff-expects-worse-financial-crisis-than-2008-says-future-rate-hikes-are-now-pointless-economics-bitcoin-news\/"},"modified":"2023-03-19T02:18:52","modified_gmt":"2023-03-19T02:18:52","slug":"economist-peter-schiff-expects-worse-financial-crisis-than-2008-says-future-rate-hikes-are-now-pointless-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/economist-peter-schiff-expects-worse-financial-crisis-than-2008-says-future-rate-hikes-are-now-pointless-economics-bitcoin-news\/","title":{"rendered":"Economist Peter Schiff Expects Worse Financial Crisis Than 2008 \u2014 Says ‘Future Rate Hikes Are Now Pointless’ \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Economist Peter Schiff has warned that the current financial crisis will be worse than in 2008. \u201cFuture rate hikes are now pointless,\u201d he stressed, adding that any effect will be more than offset by the Fed\u2019s quantitative easing.<\/strong><\/p>\n

Peter Schiff\u2019s Financial Crisis Warning<\/h2>\n

Economist and gold bug Peter Schiff shared his outlook for the U.S. economy in a series of tweets this week. He explained that when the government \u201cimposed lots of new banking regulations after the 2008 financial crisis, we were assured that what is happening right now would never happen again.\u201d However, he argued:<\/p>\n

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One reason we had the 2008 financial crisis was too much government regulation. That\u2019s why this crisis will be worse.<\/p>\n<\/blockquote>\n

\u201cThis time it\u2019s different. When the 2008 financial crisis started, the dollar rose and gold fell. This time it\u2019s the reverse \u2026 That\u2019s because investors are realizing the high inflation that should\u2019ve hit ten years ago will hit even harder now!\u201d the economist opined.<\/p>\n

\u201cThe Fed caused the financial crisis of 2008 and 2023,\u201d Schiff asserted, claiming that he forecasted both because he \u201cunderstood the consequences of the Fed\u2019s policy mistakes.\u201d He added that he \u201cstarted predicting the current financial crisis back in 2009,\u201d but at the time, he did not know \u201chow long it would take for it to hit.\u201d<\/p>\n

Schiff further explained that the Fed\u2019s quantitative easing (QE) is back. \u201cLast week, the Fed\u2019s balance sheet swelled by $300 billion, wiping out 4 months of QT [quantitative tightening] in one week. By the end of the month, the balance sheet could reach a new high. Rate hikes don\u2019t matter. Inflation is headed much higher, thanks to bank bailouts,\u201d he detailed. His comment followed the Federal Reserve and the U.S. government unveiling measures to bail out failed Silicon Valley Bank<\/a> and Signature Bank<\/a> last Sunday.<\/p>\n

The economist continued:<\/p>\n

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The Fed was fighting a two-pronged war against inflation, rate hikes and QT. The Fed has now reversed fire, and is doing aggressive QE. If QT was designed to lower inflation, QE will raise it. Future rate hikes are now pointless, as any effect will be more than offset by QE.<\/p>\n<\/blockquote>\n

\u201cAs I warned for years the only way the Fed can come close to achieving its 2% inflation target is to allow a worse financial crisis than 2008 to run its natural course, with no bailouts for banks or their customers,\u201d he conveyed. Referencing recent bailouts<\/a> of major banks, he concluded: \u201cThe Fed chose bailouts and surrendered the inflation fight.\u201d<\/p>\n

Do you agree with Peter Schiff? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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