America is set to become the United States of Britain, or worse, Peter Schiff, CEO of Euro Pacific Capital tells Yahoo.

“If you look at what’s happening in Britain right now you have a glimpse of what’s about to happen in the United States,” he states

Schiff pointed out that the British economy contracted in the fourth quarter of 2012 and says it will probably contract again this quarter. “Britain is moving into stagflation,” he declared. Stagflation refers to a situation where rising prices, or inflation, are occurring in an economy that is not growing.

Editor's Note: 'It’s Curtains for the US' — Hear Unapologetic Warning from Prophetic Economist.

This week, the British pound fell in comparison with 16 major currencies, Bloomberg reported.

And the outlook is not optimistic.

Mervyn King, governor of the Bank of England, expects inflation to remain above the targeted rate of 2 percent over the next two years. Meanwhile growth is expected to be weak.

King admits the United Kingdom has “big challenges” and he is fully cognizant of the limitations of policymakers, Bloomberg added.

Yet, Britain has maintained the ability to keep printing more pounds and issuing more debt.

In the United States, “we have the British disease even worse than the British,” Schiff said, citing examples such as far greater current account deficit the Britain and of course the luxurious curse of issuing the world's reserve currency.

“They’re just having to deal with it earlier than we are.”

Britain can embark upon quantitative easing in a largely reckless fashion, yes. But it will not be given the leeway to dig its grave as deeply as the United States has, according to Schiff.

He believes accountability will be demanded from Britain while central banks around the globe continue supporting reckless behavior in the United States. However, at some point, he warns, the Federal Reserve will have to make tough decisions and ultimately America will be unable to pay its bills.

“You live by the printing press, you die by the printing press,” Schiff said.

He advises keeping an eye on what is happening in Britain. Though he did not place a time frame on the events, he projects that trouble lies ahead for Britain and not long after trouble will make its way across the pond to the United States.

“We are living on borrowed time,” Schiff said.

Editor's Note: 'It’s Curtains for the US' — Hear Unapologetic Warning from Prophetic Economist.