Posted on 04/18/2013 12:58:20 AM PDT by 2ndDivisionVet
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 $16 trillion federal debt and the Fed's never ending money printing.
Currently, Bernanke and company is buying $1 trillion of Treasury and mortgage bonds a year. That's about $85 billion per month against a budget deficit that is about the same level.
According to Schiff, these numbers are unsustainable. And the Fed has no credible "exit strategy."
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....
(Excerpt) Read more at moneymorning.com ...
argentina here we come :-(
These are the fundamental realities that drove gold up to record highs and they haven’t changed.
SHTF/WROL in the streets and Obama’s ignorant voting base will probably be hit the hardest.
Scary stuff.
Thanks for all your good work, 2ndDivisionVet!
What is WROL?
I know that the SHTF. LOL
Thanks.
Apparently, it is an acronym used by Law enforcement to describe “Without Rule Of Law” or in other words, total breakdown of society, riots in the streets, chaos, etc.
I probably won’t live to see the end of the year, yet I fear more for my country then myself.
Our politicians have failed us in every possible way.
“Apparently, it is an acronym used by Law enforcement to describe “Without Rule Of Law” or in other words, total breakdown of society, riots in the streets, chaos, etc.”
In other words, Detroit.
Thanks.
At least our side should be better prepared and able to cope and survive.
“massive new tax hikes”?
on what?
does he think people will impoverish themselves to send money to Washington DC when they can’t pay to eat or heat their homes or buy a tank of gas or see a doctor??
Obama voters will starve.
The feds cannot allow interest rates to rise. The USG is the biggest debtor.
The FRB and the USG set rates and print money supply. As long as there is paper and ink they are good to go along this path.
Inflation, what inflation?
BUT they will still have their Obama phones. Let them eat each other !
This was posted near an article that said, “Don’t buy gold.” If interest rates are going up and the dollar crashes...aside from food and ammo, what else comes through with any value? Hard assets. Stuff you can hold in your hand. Land. Gold. Silver.
Who is right? I guess we will have to wait to see.
” If interest rates are going up and the dollar crashes...aside from food and ammo, what else comes through with any value? Hard assets. Stuff you can hold in your hand. Land. Gold. Silver.”
NO, NO, NO!!
If rates soar you end up with DEFLATION. And then your hard assets will crash along with everything else if this scenario comes to pass. On Peter’s last article I said the only valuable assets in a WROL scenario is weaponry, water and safe food. Gold will be pretty worthless, you can’t drink it or eat it. And try carrying it around! You’ll lose it to the gun owner pretty quickly.
BTW - this whole scenario is stupid. Who the hell would want to survive if all hell breaks loose? I’d rather move to somewhere like Japan if all this happens. At least their people believe in orderly living and not expecting the government to take care of everything.
Japan the folks who just did their own quantitative easing by printing 1.4 trillion dollars?
If this truly happens it will effect far more then just they US. It will cascade through the world.
Do not let your heart be troubled FRiend.
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