{"id":29200,"date":"2023-05-10T17:58:45","date_gmt":"2023-05-11T00:58:45","guid":{"rendered":"https:\/\/coinnetworknews.com\/economist-peter-schiff-says-nobodys-money-is-safe-in-any-bank-warns-of-financial-crises-depressions-economics-bitcoin-news\/"},"modified":"2023-05-10T17:58:45","modified_gmt":"2023-05-11T00:58:45","slug":"economist-peter-schiff-says-nobodys-money-is-safe-in-any-bank-warns-of-financial-crises-depressions-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/coinnetworknews.com\/economist-peter-schiff-says-nobodys-money-is-safe-in-any-bank-warns-of-financial-crises-depressions-economics-bitcoin-news\/","title":{"rendered":"Economist Peter Schiff Says ‘Nobody\u2019s Money Is Safe in Any Bank’ \u2014 Warns of Financial Crises, Depressions \u2013 Economics Bitcoin News"},"content":{"rendered":"
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Economist Peter Schiff expects a lot more banks to fail, warning that \u201cnobody\u2019s money is safe in any bank.\u201d He stressed: \u201cWhen the Fed sets interest rates too low and prints a lot of money \u2026 it unleashes massive inflation, creates tremendous economic imbalances that result in financial crises and depressions when the bubbles burst.\u201d<\/strong><\/p>\n

Peter Schiff on Inflation Tsunami, Financial Crises, Depressions, and Bank Failures<\/h2>\n

Economist and gold bug Peter Schiff discussed the U.S. banking crisis and where the U.S. economy is headed in an interview last week on One America News Network.<\/p>\n

Citing \u201cthe mess that the Fed made by keeping interest rates so low for so long,\u201d Schiff explained that it enabled banks to load up on \u201clow yielding, overpriced long-term debt, treasuries, [and] mortgages.\u201d Moreover, he stressed that the government and regulators push banks \u201cinto these securities with favorable accounting treatment for government securities or anything guaranteed by the U.S. government.\u201d He warned:<\/p>\n

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A lot more banks are going to fail. This is just the reality.<\/p>\n<\/blockquote>\n

Commenting on the Federal Deposit Insurance Corporation (FDIC) contemplating how they might tweak the coverage for regional banks after several major banks failed<\/a>, Schiff suggested: \u201cHow about abolishing the FDIC and let the free market handle banking. We\u2019d have a much more solid bank system if depositors knew that their deposits could be lost at a bank that was reckless and took a lot of risks, and then those banks would be under competitive pressure not to take those kinds of risks.\u201d<\/p>\n

Noting that the source of the U.S. banking crisis is that \u201cWe socialized the banking industry,\u201d Schiff detailed: \u201cWe\u2019ve also socialized interest rates because the Federal Reserve is like a Polit Bureau. They just pick an interest rate rather than allowing the market to discover the appropriate rate.\u201d The economist opined:<\/p>\n

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When the Fed sets interest rates too low and prints a lot of money in order to make that possible, it unleashes massive inflation, creates tremendous economic imbalances that result in financial crises and depressions when the bubbles burst. That\u2019s where we are right now.<\/p>\n<\/blockquote>\n

Schiff added: \u201cI think the Fed is going to have to unleash so much inflation to try to prop up all these banks, and the U.S. government, which is also insolvent. That is going to unleash runaway inflation. That is the real problem.\u201d He cautioned:<\/p>\n

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Nobody\u2019s money is safe in any bank, because even if your bank doesn\u2019t fail, it\u2019s going to be bailed out through inflation. So, you might not lose your money, but your money will definitely lose its purchasing power.<\/p>\n<\/blockquote>\n

Regarding the Federal Reserve raising interest rates by 25 basis points at their latest Federal Open Market Committee (FOMC) meeting, Schiff stated that it is not enough to bring down inflation but \u201cit is enough to create more problems for the banks and anybody else that has debt that they have to service.\u201d<\/p>\n

He explained that a lot of companies and people, particularly those who own commercial real estate, took out short-term loans at very low rates a few years ago. As those loans mature, they cannot afford higher payments. \u201cThey have less revenue, and now their interest expenses are rising,\u201d Schiff described. In addition, many companies that borrowed in the junk bond market are not going to be able to afford to service their debt at the new rates once these bonds mature, he noted, emphasizing:<\/p>\n

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So, the bulk of this financial crisis, which just got started, is in our future. We\u2019re just at the tip of a huge iceberg right now.<\/p>\n<\/blockquote>\n

Regarding where people should put their money, Schiff advised: \u201cGet out of the dollar. Get out of banks, and get into something real, whether it\u2019s gold, silver, foreign stocks. You have to look for a port in the storm because this is an inflation tsunami.\u201d<\/p>\n

What do you think about the warning by economist Peter Schiff? 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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