Schiff: Quantitative Easing Is Like 'Keeping A Drug Addict HighSunday
Comparing the economy to a drug addict, Peter Schiff, noted economist and CEO of Euro Pacific Capital, said in a recent interview that all of the money the government is printing to boost the economy is “like you are trying to keep a drug addict high. And every time the drug wears off, if you want him to stay high, you have to give him more. But he’s not going to get healthy if you keep him on drugs.”
What the economy needs, according to Schiff, is to swallow some “real bitter-tasting medicine” in the form of higher interest rates. The economist says this will mean a falling stock market, lower real estate prices, more bank failures, and drastic spending cuts by the government.
“People who are expecting Social Security can’t get all their money. People expecting government pensions can’t get all their money. Current government employees can’t get all their paychecks, they have to have reductions. A lot of government workers need to be let go. We simply can’t afford to pay them,” he says.
“We are in a lot of trouble. We have had decades of bad monetary and fiscal policy. We’ve got a cancer in our economy. It needs to be cured.”
As discouraging as that sounds, Schiff didn’t stop there. He says it will get worse for the average American.
“If we keep doing this policy of stimulus and growing government, it’s just going to get worse for the average American. Our standard of living is going to fall, eventually our currency is going to collapse, and prices are going to skyrocket.”
And Schiff lays the blame squarely on Washington. When asked to what extent President Barack Obama has been a disaster for the United States, Schiff responded, “To every extent. There’s nothing he’s done that hasn’t been bad. Unfortunately, it’s nothing new.”
While a falling stock market, collapsing real estate prices, and a lower standard of living are worrisome for most Americans, they are hardly as alarming as the scenario laid out by another economist.
Without running for office or having his own radio show, Robert Wiedemer did something that Schiff couldn’t: He accurately predicted the economic collapse that almost sank the United States.
In 2006, Wiedemer and a team of economists foresaw the coming collapse of the U.S. housing market, equity markets, private debt, and consumer spending, and published their findings in the book “America’s Bubble Economy.”
But Wiedemer’s outlook for the U.S. economy today makes Peter Schiff sound almost upbeat.
Where Schiff sees a coming recession, Wiedemer sees much more widespread economic destruction.
In a recent interview for his newest book “Aftershock,” Wiedemer says, “The data is clear, 50% unemployment, a 90% stock market drop, and 100% annual inflation . . . starting in 2013.”
Editor’s Note: Watch the disturbing interview with Wiedemer.
When the host questioned such wild claims, Wiedemer unapologetically displayed shocking charts backing up his allegations, and then ended his argument with, “You see, the medicine will become the poison.”
The interview has become a wake-up call for those unprepared (or unwilling) to acknowledge an ugly truth: The country’s financial “rescue” devised in Washington has failed miserably.
The blame lies squarely on those whose job it was to avoid the exact situation we find ourselves in, including current Federal Reserve Chairman Ben Bernanke and former Chairman Alan Greenspan, tasked with preventing financial meltdowns and keeping the nation’s economy strong through monetary and credit policies.
At one point, Wiedemer even calls out Bernanke, saying that his “money from heaven will be the path to hell.”
Shocking Footage: See the eerie chart that exposes the “unthinkable.’’
But it’s not just the grim predictions that are causing the sensation; rather, it’s the comprehensive blueprint for economic survival that’s really commanding global attention.
The interview offers realistic, step-by-step solutions that the average hard-working American can easily follow.
The overwhelming amount of feedback to publicize the interview, initially screened for a private audience, came with consequences as various online networks repeatedly shut it down and affiliates refused to house the content. Bernanke and Greenspan were not about to support Wiedemer publicly, nor were the mainstream media.
“People were sitting up and taking notice, and they begged us to make the interview public so they could easily share it,” said Newsmax Financial Publisher Aaron DeHoog, “but unfortunately, it kept getting pulled.”
“Our real concern,” DeHoog added, “is what if only half of Wiedemer’s predictions come true? That’s a scary thought for sure.
“But we want the average American to be prepared, and that is why we will continue to push this video to as many outlets as we can. We want the word to spread.”
Editor’s Note: For a limited time, Newsmax is showing the Wiedemer interview and supplying viewers with copies of the new, updated Aftershock book including the final, unpublished chapter. Go here to view it now.