Home » Economist Peter Schiff Warns the US Dollar Will Crash — Says ‘We’re Going to Default’ – Economics Bitcoin News

Economist Peter Schiff Warns the US Dollar Will Crash — Says ‘We’re Going to Default’ – Economics Bitcoin News

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Economist Peter Schiff warns US dollar will crash. Noting that the US is “in much greater financial turmoil than the UK” and has a much greater debt problem, Mr. Schiff stressed: of course not. Debt repayment is not possible. So what happens? we’re going to default. “

Peter Schiff talks about US dollar crash

Gold bug and economist Peter Schiff shared his outlook for the US dollar in a podcast titled “When this rally of suckers ends, the dollar will crash,” released Saturday. He explained that the US is in big trouble leading to a US dollar crash.

refer to British situation, Schiff said the UK was concerned about rising debt.The country’s debt-to-GDP ratio is around 85% and the former prime minister Liz Truss The economist said it had “threatened to raise the UK’s debt further to GDP” and that “investors have rightly dumped the pound”. However, he added:

The U.S. national debt is now over $31 trillion, and the government ran a $1.38 trillion deficit in fiscal 2022. Schiff explained that the US debt-to-GDP ratio is actually over 125% he said. Taking into account state and local debt, that ratio balloons to 140%, he elaborates, stating:

We are in far greater financial turmoil than the UK. So selling pounds and buying dollars in fear that the UK has too much debt is jumping out of a frying pan into the fire.

Mr. Schiff stressed that it was ridiculous that people bought U.S. Treasuries as a safe haven, selling the nation’s currency because of its debt problems and pushing the dollar back when the U.S. had even more debt. He added that it would also be ridiculous to buy

“In the UK, almost all debt is at the national level. He pointed out. Emphasizing that the government is funding from the same tax base, he said:

These governments are trying to get blood from the same turnips. Because Americans are short of money. we have no savings. Can this debt be repaid? of course not. Debt repayment is not possible. So what happens? Make it default.

Schiff sees two ways the US could default

The economist continued, “There are only two ways you can default on your debts: the honest way and the dishonest way, but both are catastrophes when you own U.S. Treasuries.”

Schiff continues: Restructure the debt and communicate it to the creditors. But he believes politicians lack the integrity to do so, saying:

They’re going to take the coward’s way. they are going to print They’re going to inflate the debt… It would be insane for anyone to believe that the Federal Reserve is going to succeed in getting inflation down to 2%, which he did. it cannot succeed.

He further warned that the problem would grow as the Federal Reserve raises interest rates. warning He recently said the actions of the Federal Reserve could lead to market crashes, major financial crises and deep recessions.

Schiff tweeted on Wednesday: “September U.S. merchandise trade deficit unexpectedly rose 5.7%, imports rose 0.8%, exports fell 1.5%, marking the fifth straight month of declining trade deficit.” I broke it.” He concluded:

Now that the dollar is weakening, the future trade deficit will widen and the dollar will weaken further.

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What do you think of Peter Schiff’s predictions about the crash of the US dollar? Let us know in the comments section below.

Kevin Helms

An Austrian economics student, Kevin has been an evangelist since he discovered Bitcoin in 2011. His interests lie in Bitcoin security, open source systems, network effects, and the intersection of economics and cryptography.

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