The Great Depression will pale in comparison to the next financial crisis which could soon be coming, according to investor Peter Schiff, famous for his doomsday predictions.
“The bad news is, we are going to live through another Great Depression and it’s going to be very different. This will be in many ways, much much worse than what people had to endure during the Great Depression,” Schiff said, as quoted by ZeroHedge. “This is going to be a dollar crisis.”
According to Schiff, the US Federal Reserve is propping up the markets to urge people to spend more, but in fact, the wealth created is a bubble.
“It’s actually doing damage. If you create a bunch of phony wealth, and people end up spending money that they otherwise would have saved, you are undermining economic growth,” he said.
In January, Schiff predicted that “the economy is going to blow up like a bomb” because of the Federal Reserve policy, but President Donald Trump will be to blame.
“Unfortunately, that’s what Trump has inherited from Obama. But it’s not even really just Obama, it’s the Federal Reserve. It’s the monetary policy that has been passed like a baton from Clinton to Bush to Obama and now to Trump. And we’re near the end of the game and unfortunately, Trump’s gonna be the fall guy. This thing is all gonna collapse while he’s president,” Schiff said. The tax cuts will give the Democratic Party a reason to blame the collapse all on Trump and the Republicans, the investor added.
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