Warsh says inflation is a choice. Schiff’s response, verbatim: “I would call BS on that. Because if you don’t choose inflation, then you’re choosing something else… a big stock market decline, a real estate decline, a financial crisis” (2:29). And he doesn’t think this Fed chair is built different: “Warsh is going to make the same choice that Powell did and Yellen did and Bernanke did” (3:32).
The math Schiff walks through is the uncomfortable part. May’s numbers: the deficit up 30-something percent year over year, interest on the debt up over 40% (10:33). Finance $40 trillion at even 4% and you’re paying roughly $3 trillion a year. “That’s like 60% of our tax revenue” (11:34). Meanwhile gold has replaced Treasuries as the largest reserve asset on central bank balance sheets (12:56), and the traditional buyers of US debt are becoming sellers.
Which is how he gets to the headline: “Warsh is going to end up ramping up the QE program… The Fed’s going to be the buyer” (13:38). Because the alternative, in Schiff’s words, is a financial crisis “worse than 2008” (14:18). His forecast, two decades in the making. The full interview is above.
Peter Schiff joined The SilverTrade Insider for a MUST WATCH interview breaking down The Fed’s threat to kill inflation & its impact on the gold & silver markets.
The legendary economist and market strategist warns that Kevin Warsh is going to do the EXACT same thing as Powell, Yellen, Bernanke, & Greenspan and choose INFLATION over a complete collapse of the financial system!
Schiff warns if The Fed doesn’t MONETIZE the debt, we’re going to have a WORSE FINANCIAL CRISIS than 2008!
Peter also goes OFF EXPOSING the gov’t FRAUD and CORRUPTION…but warns that even the US Gov’t won’t be able to stop what’s coming…
