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In the Media

article imagePeter Schiff: Hyperinflation Risk High, Stocks Will Crater

article:277904:59::0
By Andrew Moran
Aug 19, 2009 in Business
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Peter Schiff, Euro Pacific President and author of Crash Proof, has forewarned Zimbabwe-style hyperinflation in the future.
In a recent interview with Money News, Peter Schiff, who predicted the current economic collapse a few years ago, sees the U.S. having double-digit inflation in the next two or three years.
Schiff, like Marc Faber, could see the US with Zimbabwe-style inflation, where the Zimbabweans bring barrels of money to pay for a loaf of bread.
Schiff has been on many networks such as CNBC, CNN, Fox News and other investment programs to warn people that “As painful as it is, this recession is necessary. We’re never going to have a vibrant economy if we keep concentrating on reinflating a busted bubble.”
In 2008, the potential Connecticut Republican Senate candidate exclaimed that bailouts and government stimulus plans are going to exacerbate the problem(s) facing the United States economy.
In the middle of the interview, Schiff cites the slashing of interest rates in 2001 and 2002, “We stimulated our way out of that recession into this depression.” He criticized the government and the Federal Reserve artificially lowering the interest rates to Japan-style rates. Schiff further added that the government is doing the wrong thing in encouraging consumers to buy more and bailing out companies because it will only make the problem a lot worse than it already is.
“The government is taking money away from people who are doing it right and giving it to people who are doing it wrong. That’s a recipe for disaster. Why should successful companies be punished to bail out unsuccessful companies?”
Peter Schiff currently held a money bomb for his Senate campaign as reported by Digital Journal. His total campaign contributions has been at approximately $850,000 and raised $350,000 on August 7.
Schiff told the interviewer that if the government became less involved in many aspects of the free market then runaway costs would not persist, “If we cancelled student loan programs, universities would charge a lot less. Prices for insured medical procedures are rising three times as fast as those for uninsured procedures. With insured procedures and low co-pays, no one cares what the procedures cost.”
As the mainstream media deemed the cash-for-clunkers program to be a success, Schiff disagreed, “We are spending money to take an asset that works … and destroy it. What’s probably going to happen in a couple of years is we’ll need a bailout for all the people who bought cars with their cash for clunkers money and can’t afford to make their payments.”
Digital Journal reported that Peter Schiff thinks higher stock prices do not mean an economic recovery, “In fact, relative to the meteoric rise of foreign stock markets over the past six months, U.S. stocks are standing still. If anything, it is the strength in overseas markets that is dragging U.S. stocks along for the ride.”
In his latest interview with Money News, Schiff continued the same message, “If you look at 2008 and 2009 together, people who invested outside the United States are in far better shape than people who invested inside. I expect that to continue.”
Videos of Peter Schiff and his predictions have gone viral over the Internet. Schiff is not the only person preaching the same message, Jim Rogers, Max Keiser, Marc Faber and many other Austrian theorists still see doom and gloom for the United States economy.
article:277904:59::0
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