Posted on 04/30/2013 3:08:21 AM PDT by Kartographer
The Crisis Is Imminent: “When The Real Crash Comes It Will Be Worse Than the Great Depression”
“The United States is like the Titanic, and I’m here with the lifeboat trying to get people to leave the ship… I see a real financial crisis coming for the United States.”
Peter Schiff August 2006
In 2006, when he faced off with many well known Titans of investing and warned of an impending financial disaster and economic collapse, Peter Schiff was laughed at by his colleagues. He urged Americans to exit financial markets and take steps to protect themselves before the wealth held in their savings accounts, retirement investments and real estate was wiped out.
Few listened.
We know what happened next.
Now, those same financial experts who publicly vilified Schiff for his predictions six years ago are at it again. Many, including our politicians, central bankers and leading economists, have unequivocally stated that the worst is behind us, and that a global recovery is on the horizon.
Once again, Peter Schiff disagrees:
“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.
…
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.
…
“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.”
…
“The Fed knows that the U.S. economy is not recovering,” he noted. “It simply is being kept from collapse by artificially low interest rates and quantitative easing. As that support goes, the economy will implode.”
A noted economist, Schiff has been a fierce critic of the Fed and its policies for years. And his warnings have proven to be prophetic.
…
His recent warnings, however, have been even more alarming. Will they also prove to be true?
In his most recent book, “The Real Crash” How to Save Yourself and Your Country“, Schiff writes that when the “real crash” comes,” it will be worse than the Great Depression.
Unemployment will skyrocket, credit will dry up, and worse, the dollar will collapse completely, “wiping out all savings and sending consumer prices into the stratosphere.”
…
“All we can do now is prepare for the crash,” Schiff said. “If we brace ourselves properly and control the impact, we will survive it.”
Indeed.
We must understand that none of the fundamental problems leading up to the 2007/2008 financial crisis have been resolved.
If anything, it’s gotten worse.
Our politicians will not change, and therefore, will change nothing in Washington. Wall Street is as corrupt as ever. Our central bank continues to devalue our currency. There is no end in sight for these people. They will continue on this unsustainable path until we as a country finally hit the proverbial brick wall.
As Peter Schiff notes, the destruction to life as we know it in America and the world is imminent. It’s going to be severe.
So much so that the government has been simulating the collapse of our financial system, the collapse of our society and the potential for widespread violence.
A collapse happened in 2008, but THE collapse is still ahead.
Try listening to FOX Business
Neil Cavuto, Stuart Varney, Gerri Willis, Lou Dobbs et al
They all know better
I do think the economy is tanking under these dangerous circumstances and I do expect the stock market to crash, but I'm wondering how long lived the crash would be.
Can any economists out there explain to me how the stock market could remain flat in an inflationary environment?
I’m in the same boat...I need about 4-5 years to put my plan in place. As a Texas vet, I qualify for a loan from the TX Veterans Land Board. I’m looking for something in the 10 acre range, and construct a 3/4 acre to 1 acre stocked pond.
You make good points.
Under the Weimar Republic, the prices of products rose of course - so quickly that manufacturers didn’t want to take orders at a set price or they’d lose money. But the price of their stock would be based on their profits, not just the price of their product. So, I’m not sure how it works. Hopefully someone out there will explain it.
That's partially correct (for now). Actually, federal judges regularly impose property taxes from the bench by judicial fiat to provide school district "equality."
More important for the future, however, is the power of a broke state and federal government to tax whatever they wish. Landowners are an easy target for taxes...and don't be surprised to see a federal property tax and high state property taxes post-SHTF.
Hopefully, this thing is held at bay for a few years so we get the time we need.
A stocked pond sounds great - easy dinner! Does it replenish itself over the years?
I have a Plan B, but it’s iffy. We have a cabin in the Sierras - to escape the liberal hordes in Mexifornia. But I’d really hate to be in this state when it all falls apart. I need to get near some conservative, can-do types to feel less jittery. There ‘might’ be a job opportunity in Idaho coming up - which would be exciting for the next 3 or so years. Totally different than anything I’ve ever experienced and just beautiful. And hardy, armed people! I guess that’s my Plan B. The cabin is Plan C - or always the last plan in my list.
Are you already in Texas? That would be a good start, if so.
There are plenty of places to ride it out. When the U.S. implodes, there will be a pile-on effect by its enemies.
Some countries, like Switzerland, will not be a target. They will make do with what they have and survive.
The question becomes one of timing and options. Where can you go, and will you have everything in place to get there when the SHTF? Many FReepers are in denial, believing the 2016 GOP presidential candidate, or the Tea Party, is going to come to the rescue, defying economic realities (the country is broke), demographic realities (the majority are now looters and moochers), and somehow bring back the good old days of Coolidge and Reagan.
It will be worse because, unlike during the depression, most people cannot live off the land. Although there were many that lived in the cities in the 1930s, we still had a substantial number of Americans that had farming and other survival skills.
“It will be worse because, unlike during the depression, most people cannot live off the land. Although there were many that lived in the cities in the 1930s, we still had a substantial number of Americans that had farming and other survival skills.”
It will therefore also be shorter and bloodier than the Great Depression.
We are in sinc with Peter Schiff. We are putting our money in a rural retreat, food, gold, junk silver and guns and ammo. When this house of cards comes down its going to be a nightmare if you are not prepared to be self sufficient.
That has been my thought as well. Most urban people have no clue about gardening, much less farming.
OTH, if the government collapses with the economy, the urban populations might suffer a great loss of life in the ensuing violence that is sure to occur when the ebt cards stop working and there is no food on the shelves anyway.
Is there a link?
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