Not "could," not "might," but will.
Peter Schiff, CEO of Euro Pacific Capital, saying what everybody knows but no elected Republican will say because of their neuroses/PGSSD (Post-Government Shutdown Stress Disorder)/Battered Wife Syndrome, and no Democrat has been willing to say up to now for fear of letting the "fundamental transformation" cat out of the bag:
"We're going to have to have a crisis on a much bigger scale than the one that's going on in Russia right now," he tells Newsmax TV's "America's Forum" show.
"We're not going to get a repeat of 2008, because the Fed is not going to allow that kind of crisis. If they raised interest rates, that's exactly what would happen. We'd have a worse financial crisis than 2008."
Because the phony-baloney plastic banana currency debasement-veneered "recovery" would be exposed for the fraud that it's always been and the underlying economic depression could no longer be concealed. The real cost of these cosmic levels of public and private debt would be manifest, consumer demand would collapse....oh, you get the picture. The whole Obama domestic house of cards would blow away like dry leaves before a blast wave.
The thing is, that fate can't be prevented, it can only be delayed - and not for much longer:
To prevent that, the Fed will refrain from raising interest rates and will instead launch another round of quantitative easing, Schiff predicts.
"But the consequence of that is going to be a currency crisis, a run on the dollar, a run on the U.S. bond market, which is going to be substantially worse, a much bigger disaster, far more painful to endure than any type of financial crisis that would have resulted from an increase in interest rates," he explains.
"But it's going to be that crisis that will force major change. Hopefully it's going to be major change for the better, but there's always a chance there could be major change for the worse." [emphases added]
If you haven't wanted to believe my doom-saying Jeremiah-ism up until now, that's fine. I'm just an exiled accountant and amateur historian with enough economic knowledge to know what happens to a country eventually when it pursues a communistic policy path that distorts and destabilizes and smothers a heretofore free and functioning economy. But Mr. Schiff is a certified, well-paid economic expert, and he is, and has been, pronouncing precisely the same DOOM that I have, and for precisely the same reasons. And now he's taking the extra step of echoing me on the historical perspective of the post-collapse direction countries take rarely being back towards liberty and freedom.
His policy prescription - call it "Walkernomics," because you know the media would - is Reaganesque, which is why the chances of it actually seeing the light of day are infinitesimal:
As for the economy, monetary policy is the key. "The U.S. economy won't recover until the Federal Reserve gets out of the way, until they allow interest rates to rise and allow the economic carnage that would result from that," Schiff maintains.
"What we need to do is have the recession that the Fed cut short. We need to let interest rates go up, let stocks go down, let real estate go down, let big banks fail. We need to clean house, we need to let speculators lose money, and we need to force the federal government to dramatically reduce its size."
Our parents' generation was just barely willing to muster enough patience to endure President Reagan's tough medicine for the ravages their Great Society indulgences inflicted on the country in terms of double-digit inflation and interest rates and the double-digit unemployment that was necessary to cure that "fever". Our generation (Boomers)? The one that spawned La Clinton Nostra and Barack Hussein Obama? Please. And Gens X and Y/Millenials are even more callow. And even were that not so, the medicine this time is as apt to kill the patient as the disease, because the relapse is so much more severe.
But you know what Friedrich Wilhelm Nietzsche said: That which does not kill me, makes me stronger. And then there's the guy on that old Autolite auto parts commercial: "You can pay me now, or pay me later."
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