Just like the financial crisis of 2008 which investor Peter Schiff accurately predicted, there are warning signs again that are being ignored. “We are seeing a lot of warning signs people should be worried about, but again they’re dismissing them, much the way they did 10 years ago,” Shiff said.
Schiff is known for his “doom and gloom” market predictions, yet he’s been spot on in the past. And our current debt-based system is unsustainable to the point that a severe global economic crisis is imminent – we just don’t know when the global bubble will burst. Once again, Schiff is trying to warn people, because the signs are there, but who’s listening?
“We’re seeing a lot of warning signs people should be worried about, but again they’re dismissing them, much the way they did 10 years ago. You know, we’re getting close to the 10-year anniversary of the 2008 financial crisis. Remember, the whole thing started in August of 2008. Here we are August 2018, 10 years later. I think we’re heading for an even bigger crisis and the same people are even more clueless.”
A big problem that could compound the next financial crisis is one Schiff continues to point out: Americans are flat broke.
“Real wages, despite the 2.7% increase, real wages are actually down during that year. In fact, this is the biggest drop in real wages in six years. Now to hear Donald Trump talk, or anybody else talk, real wages are soaring, right? Everybody is getting a raise. They’re not. Inflation – consumer prices are rising faster than wages,” Schiff said in his recent podcast on the subject of the state of the economy.
Wages have been stagnant especially in the face of inflation. Rising interest rates will also harm those already living paycheck to paycheck. There are a lot of people buying stuff on credit. In fact, the entire economy is built on working-class debt and a system which transfers wealth to the elites from the workers.
Schiff is hard on Donald Trump too, and rightfully so. Lower taxes are always a good thing, the lower the better, in fact. But Republicans refused to cut any government spending while instead, increasing it to the point of running massive deficits, making them worse than Democrats when it comes to being fiscally conservative. The cold truth is that a back-up plan is needed, and most Americans don’t have that. Many would be in some serious trouble during a financial downturn, and the country is most definitely headed that way. -SHTFPlan
As Peter put it, America is the real Turkey…
“All the people who are willing to skewer Turkey because it’s doing exactly what the United States is doing yet they don’t recognize the same problems that are building in the US.”