Expert economist Peter Schiff issued a terrifying financial warning Sunday, but it’s one we all need to listen to.
Schiff took to his Twitter account to share one of the darkest forecasts on the financial health of America since Stanley Druckenmiller joked about committing suicide to avoid the rest of this decade’s upheaval. Schiff has been yelling about inflation for years, but clearly nothing has been done to mitigate its runaway behavior.
“The imminent fiscal crisis was obviously coming for years, but it was in everyone’s short-term best interest to remain willfully blind,” Schiff said pointedly. “Doing something to avert the crisis would have been painful. But that pain would have been mild compared to the excruciating pain of the crisis.”
Part of that pain will come from what appears to be another major housing crisis. Schiff shared a Tweet back in July, claiming fixed-rate mortgages will be at 8% by the end of 2024. Fixed-rate mortgages then hit 8% by mid-October, prompting Schiff to re-up his initial forecast. (RELATED: Leading Financial Expert Thinks Our Next Economic Crisis Has A Bizarre Origin)
When I composed that post the 30-year fixed mortgage rate was still under 7% and many thought that was the top. The rate closed the week at 8%. Without Fed intervention it could easily hit 9% by year and be in double digits sometime in 2024. https://t.co/3HBgfdNtXm
— Peter Schiff (@PeterSchiff) October 21, 2023
“When I composed that post the 30-year fixed mortgage rate was still under 7% and many thought that was the top. The rate closed the week at 8%. Without Fed intervention it could easily hit 9% by year and be in double digits sometime in 2024,” he said.
Schiff argued America’s national debt “is already unsustainable.” Adding “if rates just stay at 5%, by the end of 2025, if not sooner, the debt will rise to $40 trillion. 5% of that is $2 trillion per year. That’s about 45% of annual federal tax revenue and 46% more than annual Social Security spending.”
So, it sounds like Schiff is deeply concerned about the economy. And for good reason. We’ve been telling you for years that this crisis is going to reach a boiling point, and it looks like the steam is finally here. (RELATED: We Thought We’d Heard Insane Debt Stories, But Nothing Tops This)
“Thanks to the FDIC and the #Fed the U.S. banking system is insolvent. The only way to prevent a collapse is for the Fed to create massive #inflation. Either way depositors will get wiped out. Either they’ll lose their deposits, or their deposits will lose their purchasing power,” he said Oct. 21.
Schiff thinks the government and media will look for private sector scapegoats, according to TechStory. But Schiff seems to place the blame on all key decision-makers within the government. When it’s all said and done, the dollar value will decline.