Peter Schiff: The Economy Is Doomed

  • Peter Schiff was recently a guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick. Tune in to the daily broadcast live Monday-Friday at 8 a.m. ET here.
  • Schiff, CEO and Chief Global Strategist at Euro Pacific Capital, shared his outlook on the economy.
  • The expert assured the economy is doomed.
  • On Benzinga's #PreMarket Prep show, Euro Pacific Capital's Peter Schiff was asked about the global economy’s strength and fate amid talks about interest rates surging and November job numbers.

    The expert stated the economy is not at all strong, adding, “Last month’s job report was only hot in relation to what the expectations were [...] But, based on last year, it’s only slightly above average,” he explained.

    Related Link: This Sector Is Surging On The Possibility Of A December Rate Hike

    The Jobs Situation

    “And, the last two job reports, back to back, were the weakest two job reports of the year. So, all we did was create jobs in October that we didn’t create in August and September; so it really wasn’t a strong report.”

    He continued to explicate that, in fact, if investors look at the recently released poor retail data and earnings figures, “it seems like people aren’t really getting jobs, because they are not going out there and shopping, they are not spending money like they had jobs.” So, there’s really no way to know how these numbers will be revised next month.

    The Role Of Interest Rates

    “We’ve had a bubble the entire time. The Fed has not created legitimate economic growth. This is a gigantic bubble. And it’s the bubble that can’t withstand higher interest rates,” Schiff went on to explain.

    “If the Fed raises interest rates, this bubble is going to be cracked, and we are going to have a worst financial crisis than in 2008. In fact, without the quantitative easing, the air is already coming out of the bubble. That’s why the stock market’s is not making any headway, that’s why the economy is starting to deflate, and I think the Fed is going to do QE for next year.”

    Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

    Image Credit: Public Domain
    Posted In: Euro Pacific CapitalPeter SchiffAnalyst ColorTopicsEcon #sEconomicsFederal ReserveExclusivesInterviewGeneral

    Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

    All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

    Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

    Rate collection and criteria: Click here for more information on rate collection and criteria.