According to top economist Peter Schiff, the lengthy economic shutdowns during the COVID pandemic that created a massive supply chain crisis coupled with out-of-control government spending has now created an inflationary cycle in the U.S. that is not going away anytime soon.
Following a 0.9 percent contraction in the second-quarter GDP, experts are debating if the U.S. economy has officially slipped into a technical recession.
Economists at the National Bureau of Economic Research (NBER), the arbiters of what defines a recession, have yet to make their formal declaration. Until then, Wall Street and Washington will be debating whether the current situation counts as a recession.
While the opinions and analyses surrounding the state of the U.S. economy are mixed, famous economist and investor Peter Schiff who is the founder of Euro Pacific Capital, has a different perspective: The U.S. is slumping into an “inflationary depression.”
“I think that the economic weakness is going to be so pronounced and over such a long period of time that it would not even do it justice to call a recession,” he told the outlet. “I think depression is going to be a more accurate description of what we’re going to go through.”
The U.S. will most likely spend the better portion of the current decade in a state of depression, as "prices are going to rise much more in this decade that they did in the 1970s," he said.
Economists from other major investment firms and banks have forecast anything from a mild recession and tepid growth rates over the next 18 to 24 months to echoing Schiff's pessimism.
For instance, The Epoch Times reports, Wells Fargo just recently altered the bank's base forecast for next year from an economic soft landing to just a mild economic slowdown by the middle of 2023. And TD Economics has estimated that economic growth next year will only clock in around 1.4 percent. Also, the Federal Reserve Bank of Atlanta predicted a 2.1 percent growth rate while the Fed overall believes that real GDP growth will be 1.7 percent this year and the same next year.
So far, not a lot of financial experts believe that the current economic downturn will be anything like the collapse that took place in 2007-2008. However, Schiff thinks that is a real possibility, noting that back then, most economic forecasts only predicted a modest drop-off in activity. But it turned out to be the worst financial crisis since the Great Depression.
And in fact, Schiff says he believes the coming crisis will actually be worse than it was in 2007-08.
“I think this recession is going to be deeper and longer lasting than that one,” Schiff explained.
“People forget this recession is now about six, seven months old,” he added, according to The Epoch Times. “We’re already in recession with low unemployment. Now, unemployment is going to pick up as the recession worsens. As unemployment really starts to pick up, that will put more downward pressure on the economy.”
Just Tuesday, reports noted that the U.S. labor market, which had been strong, posted its fewest job openings in more than a year after hitting a peak in March. In a separate report, The Epoch Times noted that "openings tumbled by 605,000, to 10.7 million, in June, falling short of the market estimate of 11 million. The rate of job openings dropped to 6.6 percent, from 6.9 percent."
The deep state powers that be hated Donald Trump but more than that, they hated the individualist spirit he re-instilled in his supporters and other Americans. And as 'punishment,' they are creating a massive inflation economy to force as many people as possible back onto the government dole so they can control us.
If you can diversify your income to 'recession-proof' it, do so now.