Tags: Schiff | US | economy | collapse

Schiff: US Headed Toward Collapse Worse Than 2008 Crisis

By    |   Wednesday, 18 July 2012 08:03 AM

The U.S. economy is headed for a meltdown much more severe than the Great Recession of 2007-2009, says Peter Schiff, CEO of Euro Pacific Capital.

"We've got a much bigger collapse coming, and not just of the markets, but of the economy," Schiff tells Yahoo. "It's like what you're seeing in Europe right now, only worse."

The economy’s slowdown will worsen by year-end, perhaps turning into a recession, he says. That will trigger another round of quantitative easing (QE3) by the Federal Reserve.

Editor's Note: The Final Turning Predicted for America. See Proof.

That easing will send the dollar down without boosting the economy, Schiff maintains. The dollar’s drop, in turn, will send import prices higher. And that will hurt corporate earnings.

When earnings suffer, companies will lay off millions of workers, Schiff predicts. Then come bank failures, a housing collapse, and a tax increase, as the government raises revenue for another unsuccessful stimulus package.

"That's when we hit our real fiscal cliff, when we're going to have to slash government spending," Schiff says.

Either we will have to accept severe austerity like Greece or "pretend we can print our way out of a crisis, and instead have runaway inflation,” he says.

Other experts are worried about the U.S. economy too, though few are apocalyptic like Schiff.

Macroeconomic Advisers just cut its estimate for second-quarter growth to 1 percent — compared to actual first-quarter growth of 1.9 percent — after news of weak retail sales in June, The Wall Street Journal reports.

Editor's Note: The Final Turning Predicted for America. See Proof.

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Wednesday, 18 July 2012 08:03 AM
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