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May
19
2021

Peter Schiff Warns Tucker Carlson:
The Coming Financial Crisis Will Be Worse Than The Pandemic
Schiff Gold

Consumer Price Index (CPI) data for April came in much hotter than expected. Year-on-year, inflation is up 4.2%. The big number even prompted Federal Reserve Vice Chairman Richard Clarida to say, “We were surprised by higher than expected inflation data.”

Peter Schiff appeared on Tucker Carlson’s show to talk about the consequences of more printed money chasing fewer goods. Peter said inflation is going to hit the middle class harder than the pandemic.

Peter said this hot CPI print is a cause for concern and ultimately it is a tax.

It is the inflation tax. And if you look at how much the cost of living went up, measured by the CPI in the first four months of this year, it’s 2%. So, if you triple that to annualized it, we have consumer prices rising at 6% annually. But if you look at the monthly numbers, every month it accelerates. So, if you extrapolate the trend of the first four months of this year for the entire year, you’re going to get a 20% increase in consumer prices in 2021.”

Tucker asked a poignant question. If the value of the US dollar is falling as quickly as the CPI suggests, why would any country want to invest in US bonds? Doesn’t this threaten to cause a shake-up?

Peter said they won’t want to invest. They’ll be selling US Treasuries.

Anybody that can connect these dots is going to be selling US Treasuries. And the problem is there’s a lot of US Treasuries to be sold.”

Peter noted that a lot of people are talking about a shortage of goods.

The real problem is the surplus of money. Whenever you print a lot of money, it’s always a goods shortage because the Federal Reserve can print all the money they want, but they don’t print products to buy with the money. So, we have all this money being printed. We’re not producing a lot. People are sitting at home cashing unemployment checks. This is a tax. It’s an inflation tax, a Biden tax, whatever you want to call it. But when Joe Biden says ‘don’t worry! Only people that make over $400,000 a year are going to have to pay higher taxes to fund all these programs,’ he’s lying. Because every American is going to pay the inflation tax. And it’s going to hit the middle class and the poor the hardest.”

That led Tucker to another poignant question. It’s clear that printing money means more dollars chasing fewer goods. Of course, we’re going to end up where we are today. So, why didn’t the geniuses making these policies anticipate this?

Peter said even the so-called geniuses at the Federal Reserve keep telling us not to worry. According to them, inflation is “transitory.”

But these are the same guys that told us not to worry about the subprime mortgage market. Remember early on, Ben Bernanke said, ‘ Don’t worry about subprime. It’s contained.’ Well, now they’re saying don’t worry about inflation. It’s transitory. Inflation is as transitory now as the subprime market was contained. And this inflation crisis is not only going to be worse than the financial crisis, it’s going to be worse than the pandemic. Because the government’s cure is what’s going to kill the economy, not the disease itself.”

 

 

Peter is an economic forecaster and investment advisor influenced by the free-market Austrian School of economics. He is one of the few forecasters who accurately and publicly predicted the 2007 housing market collapse and subsequent 2008 financial crisis. His latest best-selling book, The Real Crash: America’s Coming Bankruptcy – How to Save Yourself and Your Country, warns that the 2008 crisis was just the prelude to a larger sovereign debt crisis in the United States that may lead to a collapse of the US dollar. Peter recommends long-term investment in foreign markets with sound fiscal policies, as well as global commodities including buying gold, silver and other physical precious metals.

Peter Schiff’s investment career began with Shearson Lehman Brothers in the early 1990s. In 1996, he and a partner started Euro Pacific Capital in Los Angeles, later moving the headquarters to Connecticut. The firm has since expanded, with offices in Scottsdale, Arizona, Boca Raton, Florida, Newport Beach, California, Los Angeles and New York City. Euro Pacific Capital’s investment strategy focuses on long-term wealth savings in the face of a declining US dollar with an emphasis on emerging market and commodity-focused investments.

Peter is best known for accurately forecasting the 2008 financial crisis. During a Fox News debate in December 2006, Schiff said, “What’s going to happen in 2007 is that real estate prices are going to come crashing back down to Earth.” Business news journals reported that Schiff accurately predicted the crisis, while “nearly all [macroeconomists] failed to foresee the recession despite plenty of warning signs.”

Peter has also worked in the political arena, first serving as an economic advisor for Ron Paul’s 2008 presidential campaign and later running for United States Senate in Connecticut in 2010 as a Republican. Politically, he leans Libertarian, with an emphasis on fiscal conservatism.

Peter started SchiffGold in 2010 after recommending for decades that investors allocate 10-20% of their portfolios to physical precious metals. Peter became concerned that some of his Euro Pacific Capital clients were being misled into purchasing overpriced “numismatic” gold and silver products from gold dealers with unsavory business practices. Peter started SchiffGold to provide a trustworthy alternative that would sell only the most liquid physical bullion products at the lowest possible prices. SchiffGold is backed by Peter Schiff’s Guarantee that it will only sell the most liquid physical bullion products at the lowest possible prices.

Peter’s expertise on money, economic theory, and international investing makes him a highly sought after as a speaker and analyst. He has been quoted and interviewed hundreds of times by media outlets around the world, including The Wall Street Journal, Barron’s, Die Zeit, Tokyo Shinbun, South China Morning Post, Investor’s Business Daily, The Financial Times, The New York Times, The Los Angeles Times, and The Washington Post. He regularly appears on CNBC, CNN, CBC, Al Jazeera, Fox News, and Fox Business Network.

 

  

www.europac.com