CEO and chief global strategist of Euro Pacific Captial Inc., Peter Schiff speaks to TheBlaze about the state of the economy, the doctored government numbers, and the questons that should be asked about the US govt's actions versus the data released showing a GDP growth of 5 percent, stating that the very fact that the Federal Reserve has kept interest rates near zero since the onset of the recession "speaks volumes" about what the true state of the economy is.
Schiff says in his opinion without more Quantative Easing (QE) there might be another recession next year and offers his prescription for the economy, stating "Let the recession happen, raise rates."
"It’s gonna be a bloodbath but it’s got to happen." Schiff continues "Easy monetary policies aren’t a permanent fix," but will merely "delay the Day of Reckoning” — meaning that day “will just be worse when it comes."
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Schiff pointed to a slew of economic indicators that demonstrate relative weakness in the economy: durable goods orders slacking off, a weak purchasing managers index and a weak holiday shopping season (though last-minute shopping may have helped boost retailers’ bottom line).
“The average consumer has way too much debt and household net worth has declined,” Schiff said. “Real wages are lower today than they were five years ago. I think people are overestimating the shape of the consumer and his ability to spend.”In the video below published by the Peter Schiff YouTube channel, Schiff discusses the bursting oil bubble and how that can send the economy spiraling back into a recession.