"First of all, just because the GDP number is getting bigger, it does not necessarily mean that the US economy is actually growing. It`s just the way we calculate the growth. A lot of it is because we are underestimating inflation. You know, we deflate the GDP with a number that the government calculates and it purposes to represent inflation but I think that number is much to low and therefore the GDP is being overstated.
But in addition to that, a lot of the GDP is simply spending borrowed money. We have an huge trade deficit with China, we borrow a lot of money we import a lot of chinese goods, all that counts as growth when we spend money, but the fact that we are borrowing money to finance all the spending, nobody pays attention to that. I don`t think it is legitimate economic growth." - in a recent interview with CCTV
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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.