{"id":20234,"date":"2023-04-26T01:08:20","date_gmt":"2023-04-26T01:08:20","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/economist-peter-schiff-warns-us-will-default-on-its-debt-raising-debt-ceiling-will-make-problem-worse-economics-bitcoin-news\/"},"modified":"2023-04-26T01:08:20","modified_gmt":"2023-04-26T01:08:20","slug":"economist-peter-schiff-warns-us-will-default-on-its-debt-raising-debt-ceiling-will-make-problem-worse-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/economist-peter-schiff-warns-us-will-default-on-its-debt-raising-debt-ceiling-will-make-problem-worse-economics-bitcoin-news\/","title":{"rendered":"Economist Peter Schiff Warns US Will Default on Its Debt \u2014 Raising Debt Ceiling Will Make Problem Worse \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Economist Peter Schiff has warned that the U.S. will default on its debt obligations. He further stressed: \u201cAll the bad stuff that they\u2019re saying is going to happen if we don\u2019t raise the debt ceiling is guaranteed to happen because we do raise the debt ceiling.\u201d<\/strong><\/p>\n

Peter Schiff on U.S. Debt Default<\/h2>\n

Economist and gold bug Peter Schiff warned Monday on the Peter Schiff Show podcast that the United States will default on its debt obligations and that raising the debt ceiling will have devastating consequences.<\/p>\n

Commenting on politicians claiming that the U.S. debt ceiling must be raised \u201cbecause we pay our bills,\u201d the economist argued: \u201cWe never pay our bills \u2026 We have $31.7 trillion in debt. That\u2019s $31.7 trillion of bills that we have not paid. We didn\u2019t pay them. We borrowed the money. And we want to keep on borrowing the money. Nobody wants to pay any of these bills.\u201d Schiff cautioned:<\/p>\n

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It\u2019s only a question of time. It\u2019s not a question of if. It\u2019s just a question of when. We will default on our debt. All the bad stuff that they\u2019re saying is going to happen if we don\u2019t raise the debt ceiling is guaranteed to happen because we do raise the debt ceiling.<\/p>\n<\/blockquote>\n

He explained that eventually, the borrowing and money printing by the Federal Reserve will precipitate a financial and currency crisis. \u201cIt\u2019s not about America not wanting to borrow. It\u2019s about the rest of the world not wanting to lend because they know we\u2019re not going to pay them back. And one of the reasons they know that is because we\u2019ve already told them. We are telling them that repeatedly in the debt ceiling battle,\u201d he opined.<\/p>\n

The economist detailed that the U.S. could default on its debt obligations in two forms. The first is \u201can honest default where the government just doesn\u2019t pay back bondholders\u201d and the second is \u201ca dishonest default where we pay with inflation.\u201d In the latter case, he stressed that the Federal Reserve will just \u201cprint money and pay people back with worthless or near-worthless paper.\u201d<\/p>\n

Regarding commentary in the media framing the debt ceiling as the problem, Schiff argued that the problem is actually the debt. He cautioned:<\/p>\n

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The problem is that Congress and the president keep running up more and more debt and every time we get to the ceiling, we either raise it or suspend it \u2026 The problem is that we keep raising the ceiling, not that we won\u2019t raise it. In fact, the threat is that we raise it again.<\/p>\n<\/blockquote>\n

Do you agree with Peter Schiff that the U.S. will default on its debt and raising the debt ceiling will make the problem worse? 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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