Peter Schiff, chief economist of Europac and best-selling author, has issued a warning about an impending new Great Depression in America. In an interview, Schiff stated that official Consumer Price Index (CPI) numbers were designed to mislead the public and that the country was heading towards a depression worse than the one experienced in the 1930s.
Schiff commented that this crisis will partly originate from the high inflation levels that the government is fueling by increasing public spending, which will affect the qualification of the U.S. public debt. The economist believes that this upcoming Great Depression will be different from its 1930s predecessor due to the continued rise of prices and the loss of purchasing power of Americans.
Schiff also criticized the way CPI numbers are calculated, saying that it is designed to give a low result and that the real inflation number should be closer to 10%. He added that even high-interest rates will not be able to control inflation, and the U.S. will have to deal with both.
As interest rates go up, consumers will have to pay more for their borrowings and gradually see an increase in the prices of goods. Even people who do not lose their jobs will suffer as they lose the value of their paychecks.
Schiff's warning about the new Great Depression has set off alarm bells, with his followers urging people to prepare for an economic crisis. His warning conjures up memories of the disaster that wreaked havoc in the 1930s, where millions of people lost their jobs and fortunes overnight.
The global pandemic has already created an atmosphere of economic uncertainty, with millions losing their jobs or facing reduced income levels. A new Great Depression would undoubtedly exacerbate the situation, causing further misery and poverty.
It remains to be seen whether Schiff's predictions will come true, but with a growing sense of unease across the country, people are beginning to take precautions. They are stocking up on essentials, investing in precious metals, and looking for alternative sources of income.
What is clear is that if the country does face a new Great Depression, the repercussions will be felt for years to come. It is essential to heed Schiff's warning and take steps to safeguard ourselves against these uncertain economic times.
