Tags: Schiff | economy | rolling | over

Euro Pacific's Schiff: Economy 'Rolling Over' as Fed Stimulus Wears Off

By    |   Wednesday, 30 July 2014 04:11 PM

The 4 percent economic growth that the government reported for the second quarter Wednesday doesn't mean much, says Peter Schiff, CEO of Euro Pacific Capital.

He maintains that the economy has been in recession for the entire Obama presidency, which began in January 2009.

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According to official records, the recession started in December 2007 and ended in June 2009. But gross domestic product, the most complete measure of the economy's output, must grow 5 percent to indicate a recovery, Schiff told Yahoo.

"People are losing their full-time jobs, housing is terrible, the price of food and utilities is rising," he said. "The economy is rolling over, and the euphoric effects of cheap money are wearing off."

The Federal Reserve, which tapered its bond purchases after a policy meeting that ended on Wednesday, has overestimated the economy's strength, Schiff said.

"The economy is not recovering the way the Fed believes it is, and all [it] can do is buy more bonds, buy more mortgages, and print more money," he said. "This will help in the short run but undermine the economy in the long run."

Meanwhile, Mark Bertolini, chief executive of Aetna, the country's third-largest health insurer, expressed more mild skepticism of second-quarter growth than Schiff.

"We saw weather impact on healthcare utilization in the first quarter ... because people could not get to the doctor," he told CNBC. "We have seen some increase in utilization [since then] ... and that would fit with an improving economy."

But asked whether it feels like a 4 percent world, Bertolini quickly said, "no."

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Economy
The 4 percent economic growth that the government reported for the second quarter Wednesday doesn't mean much, says Peter Schiff, CEO of Euro Pacific Capital.
Schiff, economy, rolling, over
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2014-11-30
Wednesday, 30 July 2014 04:11 PM
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