As the warnings mount of upcoming inflation, American economist Peter Schiff has blasted the naysayers, voicing his opinion that those who believe the threat is not as significant are simply wrong and that even those who do recognize it are unaware of its full impact.
Specifically, Schiff has highlighted a “gravely understated” inflation threat by those who are trying to calm inflation fears, attributing such disbelief to a lack of understanding and arguing that the current situation is “just the tip of an inflation iceberg,” according to his X post on April 29.
Meanwhile, in a recent post on his Schiff Sovereign portal, the economist highlighted the “dismal publication” from the United States Bureau of Economic Analysis, according to which “US GDP growth crashed to just 1.6%, while inflation keeps rising at a 3.4% rate.”
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“And ‘core’ inflation, which excludes food and energy, was up even higher at 3.7%! All of these numbers are much worse than expected… and frankly, Americans should be outraged.”
Inflation vs. economic potential
According to Schiff, the US is “home to the world’s largest and most successful companies, many of which are on the bleeding edge of technology and productivity,” as well as being full of talented workers, natural resources, and the most attractive capital markets. However:
“And yet, despite so much potential, this economy could only eke out a miserable 1.6% growth… with inflation continuing to persist. (…) It is a result of blatant mismanagement, naivety, and even incompetence at the White House, Congress, and the Federal Reserve. It also proves how they STILL don’t understand the basics of inflation.”
Earlier, Finbold reported on Schiff sharing his prediction of an imminent, full-blown, inflationary depression that would make prior recessions look like a “Sunday school picnic” because, as he pointed out, the economic situation in the US is in much worse shape today than it was during the 1970s.
Peter Schiff Twitter advice
Elsewhere, Peter Schiff has made other warnings on his X profile, stressing that properly preparing for the upcoming inflation requires accumulating gold, which he sees as preferable to the ‘fake asset’ Bitcoin (BTC), before the prices of commodities inevitably skyrocket.
He even went as far as disparaging an analyst who appeared on CNBC for not suggesting gold or gold mining stocks as the investments to hold during stagflation, and advising instead, “equities, including selective tech stocks,” as per his X post on April 26.
Interestingly, 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, as Finbold reported earlier.
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