Amid growing concerns of an imminent financial crash, American economist Peter Schiff has joined the doomsayers, arguing that a full-blown inflationary depression is coming that would shadow previous financial crises and make them look tame.
Specifically, Schiff warned that high inflation and economic slowdown or ‘stagflation’ would be much worse than the crisis that happened back in the 1970s, as he joined popular American radio host Alex Jones for an episode of his The Alex Jones Show on April 29.
Indeed, according to the prominent economist:
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“It’s not going to be that benign this time. What happened in the 70s is like a Sunday school picnic compared to what we’re going to go through because we’re in much worse shape economically than we were then.”
Recession ‘on steroids’
What’s more, as Schiff continued, what happened in the 1970s was stagflation, but that the “stagnation is much worse – more like depression – and the inflation is much higher, so we’re going to get all the bad things of the 70s, only on steroids.”
In his view, most people aren’t aware that they need to buy gold to prepare for this scenario because they “believe the false narrative that inflation is going to come back down to 2% and that all the Fed has to do is hold off on the rate cuts for a little bit longer and just let the inflation rate come down.”
“But that’s completely false. (…) We’re going in the other direction, and we’re going to accelerate, and the markets have still not yet come to terms with the reality that high inflation is here to stay, and it’s gonna get worse.”
Furthermore, Schiff opined that the economy has gotten much worse and “the cost of living is up about 30% or 40%” under President Joe Biden, making him one of the most unpopular presidents in history and giving Donald Trump a good chance of winning the 2024 election.
As he highlighted, the “savings rate has imploded, credit card debt is at an all-time record high, and (…) people are working second and third jobs because that’s the only way to pay the bills, they can’t cover the rent, put food on the table, and pay their electric bill on one job anymore.”
Peter Schiff Twitter warnings
As a reminder, Peter Schiff has often taken to social media to warn his followers about the upcoming inflation and to advise them to buy gold, which he considers superior to cryptocurrencies and ‘fake assets’ like Bitcoin (BTC), as well as sounding the alarm on an impending surge in commodity prices.
Recently, he has slammed a CNBC guest analyst for making no mention of gold or gold mining stocks in her recommendations of investments to own during stagflation, which he considers “will likely be the best-performing stagflation investments,” but instead, she advised “equities, including selective tech stocks.”
Meanwhile, other analysts warning of future economic trouble include Mike McGlone, a senior commodity specialist at Bloomberg, who has not only forecast a recession for 2024 but also referred to it as a crucial catalyst that could see gold surge to a whopping price of $3,000.
It is also worth noting that the investment research platform Game of Trades has recently shared indications of “extremely elevated” chances of a recession and the steepening yield curve, which would reveal the true extent of the damage caused by the Federal Reserve’s tightening measures.
Watch the entire video below:
