Next recession: Peter Schiff says US will default on its national debt - Business Insider

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 50 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 23%
  • Publisher: 51%

Malaysia News News

Malaysia Malaysia Latest News,Malaysia Malaysia Headlines

'We're going to have to have a severe recession if we're ever going to build a viable economy': Here’s why one market expert says the US is doomed to default on its debt no matter what

, the outspoken CEO and president of Euro Pacific Capital, is passionately on the other side of that debate — and he thinks that the US' frivolous spending and money-printing is going to culminate in a cataclysmic scenario. , a digital assets podcast.

"If the inflation rate is 4% or 5%, compounding — and you're getting 0% interest on your dollars — that's a one way ticket to a disaster," he said. "I think inflation is going to break out all around the world."If he's right, these inflationary pressures will have to be suppressed through the raising of interest rates. There's only one problem: The market can't handle higher rates.

"That's why the Fed is back doing QE," he said. "There's just not enough private demand for all the debt the government is selling."With all of that under consideration, Schiff sees two possible ways that this mess will play out: An honest default or a dishonest default. In direct contrast to this method is something he calls a dishonest default scenario. Schiff describes this method as just printing money, but according to him, that will result in hyper inflation. Not the outcome that anyone is looking for.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Is a 'severe recession' a euphemism for a depression?

Talking up a resession again

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 729. in MY

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines