Peter Schiff: 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.
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.
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