Exclusive: Peter Schiff Claims Something Worse Than The Great Depression Is Imminent And There’s No Way Out

Peter Schiff has been credited as being one of the few financial analysts to predict the collapse of the housing and financial markets in 2008 and the subsequent financial recession. He is also the author of several popular books on our financial state as well as a stockbroker and the founder of schiffgold.com and Euro Pacific Capital.

This week, on Joe Miller’s radio show, Peter Schiff had a strong warning for all Americans, especially investors. He is predicting an imminent recession that will last longer and be more painful than the Great Depression of the 1930’s. Due to past policies and current issues, he contends there is no way the US can avoid this catastrophe.

He blames the Federal Reserve as the primary cause of this imminent recession. He points to the Fed’s seven years of zero percent interest rates and three rounds of quantitative easing. Now that the Federal Reserve is trying to ease up on the monetary stimulus, the terrible financial state the U.S. is really in will be revealed.

Schiff also maintains that we are in a far worse position because we currently hold much more debt than we did seven years ago. He analogizes U.S. financial strategy in accruing debt with countries like China and Russia to a huge Ponzi scheme. Our foreign creditors are on to the fact that it may be impossible for us to make good on that debt and have no desire to be part of a free-money-to-the-US scheme.

Schiff contends another major problem is that the US dollar is currently overvalued. Many countries are taking advantage of this high valuation by making moves to get rid of their United States dollars. As the world’s reserve currency, this overvaluation also creates instability internationally.

The only reason the U.S. hasn’t collided with economic disaster yet is, in Schiff’s opinion, the currency speculators. However, no matter what the speculators do, the dollar will eventually fall, as much as 30%. In a worst case scenario, the end result could be hyperinflation, wiping out most of the value of the dollar.

Schiff also reminded listeners that the dollar itself does not hold any intrinsic value. Its value is entirely contingent upon people’s confidence in it. Once people lose confidence in the dollar, its value will evaporate and will be worthless to purchase anything with, so political leaders do what they can to reinforce faith in it. A case in point is Obama’s State of the Union address where he falsely claimed that the economy had recovered. According to Schiff, these false reports that the economy has recovered are being used to prop up confidence in the dollar.

There are numerous indicators that the US economy is in serious trouble. At the beginning of this year several companies (Walmart, Macy’s, and Finish Line) all reported numerous store closures and massive layoffs. Walmart alone is expected to layoff 10,000 people. Other companies that do not have physical stores such as Yahoo and Johnson and Johnson have also announced layoffs that will affect thousands of more people. Finally, the percentage of adults in the labor force is at the lowest level in 40 years while wage gains for most workers has been a nonexistent. These are all indicators that the U.S. economy is in troubled waters.

What is Peter Schiff’s advice for U.S. investors? To protect against the imminent collapse, they should immediately divest themselves from the U.S. stock market and sink their money in international markets, gold and silver stocks, and other commodities.

Only time will tell whether Schiff has accurately predicted yet another financial catastrophe for the United States. One thing is sure: if he’s right about an imminent Second Great Depression, this nation – and probably the world at large – will experience an era of unprecedented political instability.

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  • Paul

    So… what else is new! What he is saying is correct but incomplete. The old “kick the can down the road” will catch up to us sooner or later and the end of the road is near. It does not take a brilliant mind to figure it out. Just in case you forgot, here is how it works: if you make $10 bucks and it costs you $8 bucks to live – woo hoo, you are doing great! If it costs you $20 bucks to live and you only make $10 bucks you have a problem and you need to cut back on your expanses to survive. Got it now? Too bad our government could give a crap about it. So long as they keep getting more money, it will not changed until we face a complete financial collapse. Not IF but WHEN.

    • Linda

      Does the government think they are better than God ? Probably. God only requires 10% !
      I have found out over the years, the 90% goes farther than 100% when I am faithful to God.

  • Linda

    Jesus Christ & His Blood is the way out. David said ” I have never seen the righteous forsaken nor his seed begging bread ” If America will repent & seek God, He will heal our land. Otherwise we are toast. The ONLY REASON this nation has been so blessed is because it was built on the principles of God’s Word. We have been friends with Israel, the Apple of God’s eye, that is until lately. By humility & the fear of the Lord are riches & honor & life.

    • deanbob

      Some segment 20-40% want to drive God out of the country and the world and replace God with the religion of pseudo science.

  • dennykray

    Before God’s justice comes His mercy.
    Nearly 60 million unborn killed.
    The sanctity of marriage has been trashed.
    Immorality of all sorts on tv and in the movies.
    The Lord’s Day has become a day for profit and pleasure at the expense of others.
    Etc., etc., etc..
    Total global economic collapse is only the beginning.
    A judgment is coming.
    Indeed, it has already begun.