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Wednesday, May 22, 2024

US headed for ‘Economic Disaster’ worse than in 2008

According to Peter Schiff of Euro Pacific Capital, the trade war with China, excessive printing and public debt pose a threat to the American economy.

US President Donald Trump said a deal between Washington and Beijing is more likely, following a phone call between the negotiators of both countries on Tuesday.

RT’s Boom Bust brings in Peter Schiff of Euro Pacific Capital to talk about the possibility of reaching a preliminary deal in a trade war that has dragged on for 16 months.

“I don’t think that Trump is trying to make a deal,” the veteran broker says, explaining that “Trump just wants the stock market to go up.”

As long as the stock market is going up “he couldn’t care less about a deal with China,” Schiff continues, suggesting that “if the stock market started to tank he might feel some type of pressure to actually deliver a deal…”

Schiff points out that the money-printing will continue “as far as I could see, and that’s what is driving stocks and will continue driving stocks until something causes that to change.”

Read more: Trade War with China Shaking US Stability

Another problem, according to Schiff, is that the American consumer is deep in debt, and the “only reason he could spend is because the Fed is keeping rates low enough.”

He explains that credit continues to flow despite the lack of legitimate savings to finance it. “So, this whole house of cards is going to come tumbling down and the consumer is going to be right in the center of that.”

All these factors combined mean that “the US is headed for a worse economic disaster than the one we had in 2008,” according to Schiff.

RT with additional input by GVS News Desk.