Market Overview

Peter Schiff: The Economy Is Doomed

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: Analyst Color Topics Econ #s Economics Federal Reserve Exclusives Interview General Best of Benzinga


    Related Articles (DJIA + SPX)

    View Comments and Join the Discussion!

    Latest Ratings

    RPAYCantor FitzgeraldMaintains18.0
    CMSCredit SuisseDowngrades
    PBCTStephens & Co.Maintains15.5
    TTECCowen & Co.Initiates Coverage On50.0
    View the Latest Analytics Ratings
    Don't Miss Any Updates!
    News Directly in Your Inbox
    Subscribe to:
    Benzinga Premarket Activity
    Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
    Market in 5 Minutes
    Everything you need to know about the market - quick & easy.
    Daily Analyst Rating
    A summary of each day’s top rating changes from sell-side analysts on the street.
    Fintech Focus
    A daily collection of all things fintech, interesting developments and market updates.
    Thank You

    Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at