Saturday, April 25, 2015

Peter Schiff warns U.S. economy in a bubble being inflated by Federal Reserve

The United States economy hasn’t exactly been the bastion of recovery since the financial collapse a few years ago. Millions of people are still out of work, households nationwide are in massive debt, students are on the brink of a personal collapse and the only people and organizations benefitting in today’s economy are those who are close to the money printing.

Peter Schiff, CEO of Euro Pacific Capital, speaking in an interview withNewsmax, isn’t exactly impressed with the overall economy and believes it’s currently in a bubble that is being inflated by the Federal Reserve. To Schiff, the U.S. economy can’t remain strong because it’s not even strong to begin with, citing the lies being purported by the Fed, including the central bank shrinking its astronomical balance sheet (nearly $5 trillion).

According to Schiff, the balance sheet will never contract or diminish.

“The balance sheet is going to get bigger and bigger when the fed launches QE4 [quantitative easing],” averred Schiff. “They cannot shrink this balance sheet, and they cannot raise interest rates without pricking the bubble. That’s what they should do, but unfortunately, that’s not what they’re going to do.”


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