Economist Peter Schiff Warns of Financial Crisis and ‘Much More Severe Recession’ Than the Fed Recognizes

Economist Peter Schiff Warns of Financial Crisis and "Much More Severe Recession" Than the Fed Recognizes

Economist and gold bug Peter Schiff has warned of a financial crisis and a much more severe recession than the Federal Reserve recognizes. “The economy is not only going to weaken, but weaken much more than the markets expect,” the economist stressed. Peter Schiff’s Warning

Gold bug and economist Peter Schiff voiced his concerns regarding the U.S. economy several times this week. Commenting on the Federal Reserve’s efforts to curb inflation, he said: The reality is inflation is not going to weaken. It’s going to strengthen. The economy is not only going to weaken, but weaken much more than the markets expect.

“The real cause of inflation is the U.S. government and the Federal Reserve acting in concert with one another, where the U.S. government spends money it doesn’t have, and then the Fed prints the money for the government to spend — that is why we have inflation,” he explained.

In an interview with Fox Business on Wednesday, Schiff commented on the speech by Federal Reserve Chairman Jerome Powell who claimed that disinflation “has begun” but is going to take time. Schiff argued: “That disinflation is transitory. Maybe he doesn’t realize that yet, but it is.”

Emphasizing that the government has continued to spend billions of dollars every month, Schiff said if the Fed chairman believes that a slowdown in the economy is going to cool inflation, he would be wrong. The gold bug opined: That’s actually going to fuel the inflation fire. The real risk is that we end up with a financial crisis and a much more severe recession than the Fed recognizes.

“And then the Fed tries to prop up the economy to try to stimulate, or combat the financial crisis by creating even more inflation,” he warned.

This was not the first time that Schiff has voiced his concerns about the U.S. economy. At the end of last year, he said that inflation was about to get much worse, and the U.S. dollar will face one of its worst years ever. In October last year, he said the dollar will crash and the U.S. is going to default on its debt. He also predicted that the Federal Reserve’s action could lead to market crashes, a massive financial crisis, and a severe recession. Tags in this story Peter Schiff, Peter Schiff economic forecasts, Peter Schiff economic warning, Peter Schiff economy, Peter Schiff Fed, Peter Schiff Fed inflation, Peter Schiff financial crisis, Peter Schiff inflation, Peter Schiff Jerome Powell, Peter Schiff predictions, Peter Schiff recession

Do you agree with Peter Schiff about the U.S. economy? Let us know in the comments section below. Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. Federal Reserve Officials Say More Interest Rate Hikes Are Needed to Curb Inflation ECONOMICS | 2 days ago Analyst Warns of Banks" Authority to Confiscate Funds, Decline of US Dollar Purchasing Power ECONOMICS | 2 days ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleRich Dad Poor Dad’s Robert Kiyosaki Warns ‘Everything Will Crash’ — Plans to Buy More Bitcoin Next articleIndia’s Central Bank Reveals 50,000 Users and 5,000 Merchants Now Using Digital Rupee Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItCentral Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year

The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.Tony Hawk"s Latest NFTs to Come With Signed Physical Skateboards Today"s Top Ethereum and Bitcoin Mining Devices Continue to Rake in Profits Fidelity Investments Launches Crypto, Metaverse ETFs — Says "We Continue to See Demand" Interest in Real Estate Investments in Spain Grew 400%, With Some Using Crypto and Stocks as Payment Method