Peter Schiff: No Way Out for Fed Trapped in Monetary Roach Motel – Repeat of 2008 Financial Crisis Coming-Only Worse

In Monday night’s first Presidential debate, Donald Trump criticized the Federal Reserve’s handling of the economy and warned, “. . . if you raise interest rates even a little bit, that’s going to come crashing down. We are in a big, fat, ugly bubble.” Money manager Peter Schiff explains, “Trump says if we raise rates, a lot of bad things are going to happen.  Then, he criticizes the Fed for keeping rates low.  So, which is it? He’s trying to have his cake and eat it too.  What Trump has to explain is low interest rates don’t help the economy.  Low interest rates are one of the biggest headwinds to the economy because all they do is inflate asset bubbles and prevent legitimate economic growth.  Donald Trump has to explain that rates have to go up, and when they do, it’s going to burst the bubble, and it’s not going to be fun.  If we are ever going to have a real recovery that’s going to produce a higher standard of living and good paying jobs . . . we are going to have to let this bubble deflate.  That means raising interest rates, and we are going to have to live with the consequences.  That means a collapsing stock market, a collapsing bond market, a collapsing real estate market and failing banks.  It’s a repeat of the 2008 financial crisis–only worse.”

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Greg Hunter

Greg is the producer and creator of Greg Hunter’s USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin. Greg Hunter’s USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.