March 20, 2019
Peter Schiff, the CEO and chief global strategist of Euro Pacific Capital Inc., has said that we, as Americans, are not “borrowing ourselves rich” as the majority believes. In fact, as with all borrowing, it’s only making us broke.
Schiff hasn’t minced words much and he continues to say that the upcoming recession is a “done deal.” Schiff also implores us to not be fooled by the optimism in the media surrounding events such as the trade war and a stock market rally. Neither will prevent the coming recession. Our debt load has ensured we will live through another Great Depression. And this next one will be much worse.
Right now, we are being bombarded by positive economic news, for the most part. But most Americans are oblivious to what’s going on right underneath the surface. Despite the recent economic growth, there is plenty of economic data to back up Schiff’s assessment of the current state of the United States’ and the global economy. In his most recent podcast, Peter Schiff said that while the GDP (Gross Domestic Product) number might look pretty good, the growth is unsustainable because it’s all built on debt.
Schiff puts the GDP numbers into perspective, and considering the debt load the U.S. economy is burdened with, the outlook isn’t all that rosy. And of course, it’s not just government debt. Household debt is also at record levels and as Schiff says, “We’re not richer because of this economic growth.”
“So, we had to add a lot more debt in 2018 to buy not as much growth as a much smaller amount of debt in 2005. So, the takeaway from that is this is unsustainable because the growth came at a heavy cost. We had to increase the amount of debt that we had by a lot more than the percentage that the…