Tags: Schiff | economy | sicker | recovery

Peter Schiff: Economy ‘Getting Sicker’

By    |   Monday, 26 March 2012 01:04 PM

The 3 percent expansion in GDP during the fourth quarter has many experts believing that the economy is on the rebound. Don’t believe it, says Peter Schiff, CEO of Euro Pacific Capital.

“The economy isn’t recovering. It’s getting sicker,” he tells Fox Business Network. “The Federal Reserve and Congress are preventing a real recovery.”

While spending may be declining a bit as a percentage of GDP, “a real recovery would mean we spent a lot less,” Schiff says.

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“Consumers would be spending less, government would be spending less, interest rates would be a lot higher, we’d be saving our money, we’d be investing, we’d be paying off debt, we’d be producing, you’d see the trade deficit coming down. None of this is happening.”

Instead, the Federal Reserve has created a quantitative easing program to boost the economy, Schiff says. And he maintains that QE3 is coming.

“If it doesn’t, we’re going to have a collapse much worse than 2008, but unfortunately that’s part of the cure,” Schiff says. “We have serious structural imbalances that need to be corrected.”

Others are less pessimistic. "We are seeing what historically would be considered a healthy growth rate for the country," Brian Hamilton, CEO of Sageworks, a financial information company, tells CNNMoney.com.

"Last quarter compares very favorably to the GDP growth rate over the past few years and indicates the country continues to recover from the recession."

Editor's Note: Google Banned This Video But You Can Watch it Here

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Monday, 26 March 2012 01:04 PM
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