Economic expert Peter Schiff has expressed concern over "a rush" to abandon the US dollar. He predicted that "there's going to be a massive crisis," and that "it's going to send the economy into a tailspin and people are going to feel the economic pain."
The US Dollar Warning from Peter Schiff
Economist who loves gold In an interview with David Rodriguez this week, Peter Schiff reaffirmed his caution over the approaching demise of the US currency.
When asked if everyone was fleeing the American dollar, Schiff responded, "They will be. At the moment, it's merely a trickle. But he emphasized:
There will soon be a rush to get rid of the dollar, and there will be a downpour.
A significant devaluation of the dollar will take place, according to Schiff, "because we have these deficits — $2 trillion-plus annual budget deficits — not only as far as the eye can see, but as far as the eye can see them getting much bigger than $2 trillion, $3 trillion, and $4 trillion." It's utterly unsustainable during the following official recession, he cried. The deficits will be $4 trillion to $5 trillion annually when unemployment truly starts to rise again. We currently have a national debt of about $33 trillion, and interest payments on that debt rank third in the government budget.
The analyst continued, "By next year, interest on the debt will be the government's largest expense. It will eventually be the only expenditure we have. If this keeps up, there won't be any money left over for anything besides interest, which is plainly a situation we can't reach. He foresaw:
Long before we get there, there will be a serious crisis that will, you know, put the economy into a tailspin and cause people to suffer economically.
In addition, Schiff pointed out that many nations around the world, including the BRICS countries, are abandoning the US dollar in favor of their own national currencies. He emphasized that the United States has utilized sanctions, such as the freezing of Russia's dollar reserves, to use the U.S. dollar as a weapon. He said, adding, "That was a huge wake-up call to every country in the world but in particular a nation like China... and maybe Saudi Arabia"
It conveyed the message, "Get out of the dollar," warning that doing so would put you in danger of being penalized by the United States.
Schiff has issued numerous warnings regarding the US dollar and economy. He stated last week that the United States cannot afford to separate from China. He issued a "full-blown financial crisis" warning for the US economy last month.
Regarding the American economy and the currency, do you concur with economist Peter Schiff? Comment below with your thoughts and let us know.