One year ago this month it was revealed that throughout the course of this crisis some 40% of all wealth in America had been vaporized. It was a stunning number to be sure, and one that many analysts predicted would reverse as the Bernanke/Obama recovery took hold. Now, a full year on, the news has not gotten any better. It’s gotten much, much worse. According to a new report, the average American household has lost 55% of their net worth since the onset of the recession in 2008.
Many are likely holding to the belief that our benevolent government politicians and financial leaders have taken the necessary steps to turn this economy around.
But they’d be wrong.
“I think we are heading for a worse economic crisis than we had in 2007,” [Peter] Schiff said. “You’re going to have a collapse in the dollar…a huge spike in interest rates… and our whole economy, which is built on the foundation of cheap money, is going to topple when you pull the rug out from under it.”
According to Schiff, these numbers are unsustainable.
And the Fed has no credible “exit strategy.”
Eventually interest rates will rise… and when they do, Schiff says, stocks will tank and bonds dip to nothing. Massive new tax hikes will be imposed and programs and entitlements will be cut to the bone.
“The crisis is imminent,” Schiff said. “I don’t think Obama is going to finish his second term without the bottom dropping out. And stock market investors are oblivious to the problems.”
“We’re broke, Schiff added.
“We owe trillions. Look at our budget deficit; look at the debt to GDP ratio, the unfunded liabilities. If we were in the Eurozone, they would kick us out.”
Schiff points out that the market gains experienced recently, with the Dow first topping 14,000 on its way to setting record highs, are giving investors a false sense of security.
“It’s not that the stock market is gaining value… it’s that our money is losing value. And so if you have a debased currency… a devalued currency, the price of everything goes up. Stocks are no exception,” he said.
“The Fed knows that the U.S. economy is not recovering,” he noted. “It simply is being kept from collapse by artificially low interest rates and quantitative easing. As that support goes, the economy will implode.“
Via Money Morning
Peter Schiff knows a thing or two about what’s going on, and he’s been sounding the alarm since before 2008. He, like many others, understand that there is no way out.
There is no credible financial or economic exit strategy.
The government knows this and that’s why they are actively implementing an expansive control grid across this entire country.
Those with insider knowledge fully understand what’s coming and they have been war-gaming large scale economic collapse and the widespread civil unrest that will follow.
Make no mistake. The powers that be have an exit strategy – it just doesn’t involve recovery, stability or your well-being.