"If you look at the deflator that the government used in the second quarter GDP... (the deflator is how you adjust nominal GDP for inflation). According to the government, inflation on an annualized rate for the whole year was 0.7 percent. 0.7 percent, that`s it? I don`t believe that for a nanosecond. In fact, inflation is a lot higher than that, I mean, it`s much higher than 2 percent, probably higher than 5 percent. (...) What I know for sure is that there`s not a chance it is 0.7 percent.
Now if the government used an accurate deflator, than I believe that we would have already have reported a negative quarter for the second quarter of 2013, the US economy would be contracting." - in The Schiff Report
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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.
