Peter Schiff Warning : Low Interest Rates guaranteed road to Recession

According to Peter Schiff, the chief global strategist at Euro Pacific Capital, it was a “huge mistake” for the Federal Reserve to cut interest rates last month. Schiff says there is no way for the Federal Reserve to stops the United States from going into a recession. Peter Schiff has been saying that the Federal Reserve is going to take interest rates back to zero and launch another round of quantitative easing in order to reinflate the bubble economy after the next crash. The central bank successfully pulled this off after the 2008 crisis. By dropping rates to zero and holding them there for nearly a decade, and running three rounds of QE, the Fed has reinflated the real estate bubble, blown up a bond bubble and pumped up the stock market. But Peter said it’s not going to work the next time around. Instead, Fed monetary policy will tank the dollar and lead to an inflationary recession. There is no question the US economy is heading toward recession, according to Peter Schiff, chief global strategist at Euro Pacific Capital. He says it was a “huge mistake” for the Federal Reserve to cut interest rates last month. “They never should have taken rates to zero in 2008 and held them there for 7 years,” the veteran broker told RT. “Zero interest rates and quantitative easing have created problems in our economy that will take generations to fix. However, the healing will never get underway if the Fed goes right back to zero (which is where they are headed).” According to Schiff, it’s impossible to build a viable economy on the back of artificially low interest rates. “All it accomplishes it to push up asset prices, creating bubbles and malinvestments that hurt the economy. Relying on low interest rates for growth makes it certain that recessions will ensue when monetary policy tightens.” They never should have taken rates to zero in 2008 and held them there for 7 years,”the veteran economic analyst told RT. “Zero interest rates and quantitative easing have created problems in our economy that will take generations to fix. However, the healing will never get underway if the Fed goes right back to zero (which is where they are headed).” "the next crisis will make '08 look like the roaring twenties" said Peter Schiff . It’s impossible to build a viable economy on the back of artificially low interest rates. “All it accomplishes it to push up asset prices, creating bubbles and malinvestments that hurt the economy. Relying on low interest rates for growth makes it certain that recessions will ensue when monetary policy tightens,” he added. Runaway government debt and the Trump tariffs provided the final push to tip us back toward an inevitable recession, Schiff said. “the Fed is not causing the recession; they are just unable to delay it any longer.” He added . America and the world needs more people like Peter Schiff . The economy made a big shift from savings and production to debt and consumption years ago. people holding assets are making way more money than those people working for a living. Depressions and recessions are inherent in a debt driven economy and need to be allowed to playout. Economic downturns cleanse the economy of unproductive debt that is distorting the markets. The reason Capitalism succeeds when socialism does not is because Capital allows unproductive entities to fail. Let the markets determine what succeeds not a central authority. Link the rate of change of private sector debt to the interest rates, end the central banks and let the chips fall where they may. This was The Atlantis Report . Please like . share . and subscribe . Thank you ...










The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and many more