As the United States grapples with inflation, renowned American economist Peter Schiff has accused the government, particularly the US Federal Reserve as one of its branches, of causing it, challenging the widely accepted viewpoint of rising salaries as the actual source of the price increases.
Specifically, Schiff has challenged the narrative of increased salaries causing inflation, arguing that, instead, inflation can lead to higher nominal salaries, whereas pointing the finger at, in his view, the real culprit – the US government and the Fed, according to his X post on May 20.
Peter Schiff Twitter warnings
Indeed, Schiff has been warning about inflation for some time now, including last month, when he referred to this threat as “gravely understated” by those who are trying to curb inflation fears, stressing that the current situation was “just the tip of an inflation iceberg.
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At the same time, the prominent economist declared that a full-blow inflationary depression or ‘stagflation’ was coming that would shadow previous financial crises and make them look tame by comparison, calling it a recession “on steroids,” as Finbold reported on April 30.
Moreover, recent data indicates that auto loan serious delinquency rates have surged to 2.8% in the first quarter of 2024, the highest level in nearly 15 years, or since 2010 – in the aftermath of the financial crisis, as US households continue to miss loan payments, reminiscent of past recessions.
Inflation concerns
Meanwhile, Paul Dietrich, a veteran Wall Street analyst who accurately predicted the 2008 recession, has long warned about a potential downturn, pointing at several red flags, including unexpectedly high inflation in the first quarter of 2024 and increased market volatility. As he said:
“The economy and the stock market have never seen anything like this in history. (…) Everything reminds me of the Dot-com bubble in 2001-2002. (…) Since the current deficit spending is unsustainable, it will end at some point. When it does, the effect will be brutal for jobs, the economy, and the global stock markets.”
Interestingly, Schiff, a well-known Bitcoin (BTC) skeptic, has earlier acknowledged that Bitcoin holders are “right about the Fed and inflation,” arguing that other investors were largely unaware of the current financial crisis and the “far greater currency and sovereign debt crisis it will ultimately become.”
In the meantime, Bitcoin and tech stocks like Nvidia (NASDAQ: NVDA), Advanced Micro Devices (NASDAQ: AMD), Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), and Alphabet (NASDAQ: GOOGL) are among the market participants that have beaten inflation in the last 10 years.
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