August 19, 2009

Schiff On MoneyNews

In a recent interview with Money News, Peter Schiff, who predicted the current economic collapse a few years ago, sees the U.S. having double-digit inflation in the next two or three years.

Schiff, like Marc Faber, could see the US with Zimbabwe-style inflation, where the Zimbabweans bring barrels of money to pay for a loaf of bread. Schiff has been on many networks such as CNBC, CNN, Fox News and other investment programs to warn people that “As painful as it is, this recession is necessary. We’re never going to have a vibrant economy if we keep concentrating on reinflating a busted bubble.”

In 2008, the potential Connecticut Republican Senate candidate exclaimed that bailouts and government stimulus plans are going to exacerbate the problem(s) facing the United States economy.

In the middle of the interview, Schiff cites the slashing of interest rates in 2001 and 2002, “We stimulated our way out of that recession into this depression.” He criticized the government and the Federal Reserve artificially lowering the interest rates to Japan-style rates. Schiff further added that the government is doing the wrong thing in encouraging consumers to buy more and bailing out companies because it will only make the problem a lot worse than it already is. “The government is taking money away from people who are doing it right and giving it to people who are doing it wrong. That’s a recipe for disaster. Why should successful companies be punished to bail out unsuccessful companies?”

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.