{"id":21990,"date":"2023-02-28T18:01:21","date_gmt":"2023-03-01T02:01:21","guid":{"rendered":"https:\/\/coinnetworknews.com\/economist-peter-schiff-warns-the-fed-could-be-fighting-complete-economic-collapse-economics-bitcoin-news\/"},"modified":"2023-02-28T18:01:21","modified_gmt":"2023-03-01T02:01:21","slug":"economist-peter-schiff-warns-the-fed-could-be-fighting-complete-economic-collapse-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/coinnetworknews.com\/economist-peter-schiff-warns-the-fed-could-be-fighting-complete-economic-collapse-economics-bitcoin-news\/","title":{"rendered":"Economist Peter Schiff Warns the Fed Could Be Fighting ‘Complete Economic Collapse’ \u2013 Economics Bitcoin News"},"content":{"rendered":"
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Economist Peter Schiff has predicted that the U.S. Federal Reserve will ultimately throw in the towel on its inflation fight to confront \u201csomething it fears even more, which is a complete economic collapse, another financial crisis, or a sovereign debt crisis.\u201d He stressed, \u201cThe months of declining inflation are in the review mirror,\u201d emphasizing that now \u201cwe\u2019re going to see accelerating inflation.\u201d<\/strong><\/p>\n

Peter Schiff on Potential Economic Collapse<\/h2>\n

Economist and gold bug Peter Schiff shared some dire warnings about where the U.S. economy is headed and the consequences of the Federal Reserve\u2019s fight against inflation in an interview with Greg Hunter on the USAWatchdog show, published Saturday.<\/p>\n

Citing recent economic data, including the personal consumption expenditures price index which rose 0.6% in January, Schiff said: \u201cThe months of declining inflation are in the review mirror. And now we\u2019re going to see accelerating inflation as measured by these government indexes.\u201d<\/p>\n

Asserting that the Federal Reserve\u2019s inflation fight has been completely ineffective, the economist opined:<\/p>\n

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If the Fed is serious about fighting inflation, which I don\u2019t believe it is, but if it were serious, it\u2019s going to have to fight a lot harder than it has. Rates need to go up much more than anybody thinks.<\/p>\n<\/blockquote>\n

However, Schiff said higher interest rates alone will not be sufficient. \u201cWe also have to see a big contraction in consumer credit. We need to see lending standards rising so consumers can\u2019t keep spending,\u201d he described. \u201cPeople are spending money. They\u2019re running up more credit card debt. That is inflationary \u2026 We need consumers to stop spending.\u201d The economist stressed that people need to be working, producing, and saving \u2014 not spending.<\/p>\n

Moreover, Schiff emphasized that the federal government needs to get its spending problem under control. He detailed:<\/p>\n

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We need significant cuts in government spending. The government can\u2019t just give people money to spend, because that\u2019s what\u2019s bidding up these prices. And ultimately, they\u2019re going to force the Fed back to quantitative easing.<\/p>\n<\/blockquote>\n

Schiff predicted that ultimately the Fed is going to throw in the towel on its inflation fight, adding:<\/p>\n

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Because it\u2019s going to be fighting something it fears even more, which is a complete economic collapse, another financial crisis, or a sovereign debt crisis.<\/p>\n<\/blockquote>\n

He additionally warned that the Fed may even force the U.S. government to consider legitimately cutting Social Security and Medicare \u201cas opposed to just illegitimately cutting it by creating inflation.\u201d<\/p>\n

The economist has previously cautioned that the Fed\u2019s action could cause a financial crisis and a much more severe recession<\/a> than the central bank recognizes. He also recently predicted that inflation is about to get much worse and the U.S. dollar will crash<\/a>.<\/p>\n

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Economist<\/a>, Gold Bug<\/a>, Peter Schiff<\/a>, Peter Schiff economic collapse<\/a>, Peter Schiff Fed<\/a>, Peter Schiff Federal Reserve<\/a>, Peter Schiff financial crisis<\/a>, Peter Schiff inflation<\/a>, Peter Schiff interest rates<\/a>, Peter Schiff predictions<\/a>, Peter Schiff recession<\/a>, Peter Schiff sovereign debt crisis<\/a><\/div>\n<\/div>\n

What do you think about Peter Schiff\u2019s economic collapse prediction? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA 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.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: 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<\/a> 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.<\/p>\n<\/div>\n

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