A lot of the economies are contracting and these contractions are going to be temporary. There has been a lot of shocks in the global economy.
When the world`s biggest debtor, the United States is broke and we can not pay our bills, certainly there are going to be some disruptions. The governments around the world need to understand that.
Instead they are all panicking and acting irresponsibly which is one of the reasons the US has maintained its strength which has really been supporting our economy.
Imagine how much worse the economy would be right now, imagine how much lower the stock market would already be if foreigners were not pouring trillions of dollars into our bond market and into our economy.
If it is already weak, imagine how would it be without all that support.
Peter Schiff is the President and Chief Global Strategist of Euro Pacific Capital. As a result of his accurate forecasts on the U.S. stock market, economy, real estate, the mortgage meltdown, credit crunch, subprime debacle, commodities, gold and the dollar, he is becoming increasingly more renowned.
He has been quoted in many financial TV channels like CNBC, CNN, Fox News, Fox Business Network, and Bloomberg T.V..