{"id":19329,"date":"2023-03-31T02:10:12","date_gmt":"2023-03-31T02:10:12","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/economist-peter-schiff-warns-of-us-dollar-devaluation-and-biggest-economic-disaster-in-history-economics-bitcoin-news\/"},"modified":"2023-03-31T02:10:12","modified_gmt":"2023-03-31T02:10:12","slug":"economist-peter-schiff-warns-of-us-dollar-devaluation-and-biggest-economic-disaster-in-history-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/economist-peter-schiff-warns-of-us-dollar-devaluation-and-biggest-economic-disaster-in-history-economics-bitcoin-news\/","title":{"rendered":"Economist Peter Schiff Warns of US Dollar Devaluation and ‘Biggest Economic Disaster’ in History \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
\n<\/p>\n

\n
\n<\/header>\n
\n\n<\/div>\n

Economist Peter Schiff has warned of \u201cthe biggest economic disaster\u201d in U.S. history. He stressed that we are on the cusp of a financial crisis and \u201cit\u2019s going to be much bigger than the last.\u201d In addition, he said the U.S. dollar is being debased in order to fund the bank bailouts.<\/strong><\/p>\n

Peter Schiff Foresees \u2018Biggest Economic Disaster\u2019 in US History<\/h2>\n

Economist and gold bug Peter Schiff shared his warnings about the U.S. economy, the banking crisis, and where inflation is headed on NTD News Monday. Commenting on Federal Reserve Chairman Jerome Powell claiming that the U.S. banking system is sound and resilient, Schiff exclaimed: \u201cIt\u2019s not sound at all. It\u2019s a house of cards that\u2019s starting to collapse.\u201d<\/p>\n

Schiff explained: \u201cThanks to the mistakes the Fed has made since the 2008 crisis, we have a much bigger bubble now. The Fed caused the bubble that led to the financial crisis of 2008, and then they inflated a bigger bubble to try to paper over those mistakes and kick the can down the road so that we wouldn\u2019t have to deal with the full consequences of resolving all those mistakes.\u201d The economist opined:<\/p>\n

\n

Of course, we just compounded the problem with bigger mistakes and now the U.S. economy is poised on the biggest economic disaster in its history.<\/p>\n<\/blockquote>\n

Schiff sees the recent collapses of major banks, including Silicon Valley Bank and Signature Bank, as the start of the next financial crisis. \u201cThat\u2019s exactly what\u2019s happening now. It is a banking crisis, and banks are financials. I think people are reluctant to call it a financial crisis because they don\u2019t want to evoke the memories of 2008 and they don\u2019t want to make any comparisons. They don\u2019t want to acknowledge that,\u201d he opined, cautioning:<\/p>\n

\n

They are dismissing all the early signs of a major financial crisis. But make no mistake, we\u2019re on the cusp of one. And it\u2019s going to be much bigger than the last.<\/p>\n<\/blockquote>\n

According to the economist, banks are ill-equipped to handle a combination of a significant economic downturn and a surge in inflation. \u201cSo, if we have high inflation and a recession at the same time, banks are going to fail,\u201d he said.<\/p>\n

As inflation diminishes the value of the U.S. dollar, people will seek to withdraw their money from banks as they won\u2019t be able to offer an interest rate that can offset the loss, Schiff described, warning:<\/p>\n

\n

Of course, when people want to get their money out of banks, the money isn\u2019t there. So the only way people can get their money is if the Fed prints it. But if the Fed prints it, it just destroys even more of the value. So, it accelerates the momentum for a spiraling inflation \u2026 The dollar is being debased in order to fund the bank bailouts.<\/p>\n<\/blockquote>\n

Noting that the Federal Reserve increased its balance sheet by nearly $400 billion within a span of two weeks, Schiff cautioned: \u201cThat\u2019s inflation. And so, when you do that, you destroy the value of all the money that\u2019s already in circulation. So, Americans are going to pay, not because they are taxpayers, but because they are US dollar owners and US dollar earners. Everybody\u2019s paycheck is going to be reduced in value because of the bank bailouts.\u201d The gold bug pointed out:<\/p>\n

\n

These bailouts are endangering everybody\u2019s bank deposits, even the banks that are solvent.<\/p>\n<\/blockquote>\n

\u201cNow it\u2019s inflation that is the risk. And so it doesn\u2019t matter if your bank fails. You\u2019re still going to lose. In the event that your bank failed, you lose your money. But now, because the government won\u2019t let the banks fail, everybody who has a bank account is going to lose purchasing power,\u201d Schiff concluded.<\/p>\n

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

\n
\n\n<\/div>\n
\n
\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.

\n
\n
\n<\/a>
\n<\/span>\n<\/p>\n<\/div>\n<\/div>\n

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

\n

Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

\n