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Peter Schiff Warns: "The Whole Economy Has Imploded... Collapse Is Coming"
Submitted by Mac Slavo via SHTFPlan.com,
Back before 2008 Peter Schiff was harshly criticized and laughed at for his predictions about a coming economic collapse. Among other things Schiff warned that consumer spending had hit a wall, stocks were overpriced and lax credit lending practices would lead to a detonation of the banking system. Rather than heed the warnings, the biggest names in mainstream media tried to discredit him for not toeing the official narrative. Shortly thereafter, of course, Schiff was vindicated and much of the doom he had forecast came to pass.
Today, Schiff continues to argue that the economy is on a downhill trajectory and this time there’ll be no stopping it. All of the emergency measures implemented by the government following the Crash of 2008 were merely temporary stop-gaps. The light at the end of the tunnel being touted by officials as recovery, Schiff has famously said, is actually an oncoming train. And if the forecast he laid out in his latest interview is as accurate as those he shared in 2007, then the the train is about to derail.
We’re broke. We’re basically living off of debt. We’ve had a huge transformation of the American economy. Look at all the Americans now on food stamps, on disability, on unemployment.
The whole economy has imploded… the bottom hasn’t dropped out yet because we’re able to go deeper into debt. But the collapse is coming.
Fundamentally, America is worse off now than it was pre-crash. With the national debt rising unabated and money being printed out of thin air without reprieve, it is only a matter of time.
Schiff notes that while government statistics claim Americans are saving again and consumers seem to be spending, the average Joe Sixpack actually has a negative net worth. But most people don’t even realize what’s happening:
I read a statistic… The average American has less than a $5000 net worth… it’s pathetic… we’re basically broke… but in fact it’s much less… If you actually took the national debt and broke it down per capita, the average American has a negative net worth because the government has borrowed in his name more than the average American is able to save.
…
What’s happening is pretty much what we would anticipate. I don’t see from the data any real economic recovery, certainly not in the United States.
We’re spending more money, but it’s not because we’re generating more wealth. We’re generating more debt. We’re using that borrowed money to consume and so temporarily it feels that we’re wealthier because we get to spend all that money… but we have to come to terms with paying the bill.
The bills are going to come due. Right now interest rates are being kept at zero which makes it possible to service the debt even though it’s impossible to repay it… at least we can service it. But once interest rates go up then we can’t even service it let alone repay it.
And then the party is going to come to an end.
The problem, of course, is that no one with any real influence over public perception, like our elected officials or the media, will do anything about it. They’ll continue the party until it comes to an abrupt and irreversible end, and anyone who goes against the official narrative will be branded a lunatic gloom and doomer or extremist.
But vilifying those who are blaring the warning sirens will do nothing to change the end result:
We’re going to have a crisis… There are always going to be people who say ‘well, you’re a stopped clocked… you keep predicting doom and eventually it happens’… but you have to back and listen to why… Why are they saying it?
If you look back at things that I’ve said and the things that Ron Paul has said… This is why it’s happening… it’s not like we’re just saying negative things to be negative and then when something negative happens we can claim credit for it happening.
If you look back at the events it bears out that we’re right… unfortunately our opinions are in the minority… and you have governments that have a vested interest in ignoring these opinions because they don’t want to change because they’re at the root cause of the problem. But they don’t want to acknowledge their role in creating the problem. They don’t want to acknowledge that the problem is more government and that we need less government because that’s not how they stay in power. They promise something for nothing… they promise that government is the solution for your problems, not the cause of your problems.
They’re never going to acknowledge people like Ron Paul for what they’re saying… but they’ll try to discredit you by saying ‘well, you’ve been saying this for years and nothing bad has happened.’
But look around. A lot of bad stuff has happened. We just haven’t had the final and complete collapse. But what good is it when that happens? Now it’s too late to do anything about it.
The reality is that the American economy is on its last leg. Black Friday sales were pitiful, some of the world’s leading companies are warning of recession, and U.S. national debt will soon surpass $20 Trillion.
Just as was the case before the Crash of 2008, all of the signs are there. And just like before, the stock market continues to hover near all-time highs.
If you’ve been paying attention you know what happens next.
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They can print the money and buy the SPX futures. They have the choice. The only question is will they let the market fall now so the Jewish financiers (who have all of the $2 trillion their fellow Jews on the Fed printed and handed out) can buy up wht little of the economy they don't own.
So you're saying "Trust the riggers"? They couldn't rig the last one. Problem is, if you completely deny Peter, you are denying reality, because he called the last crash. So the solution? HIBERNATION. No shit. Everybody just fucking hibernate through this next one. We won't even need the riggers. Hide your gold well. Have a nice day.
The real problem is that the earth can only handle so much growth before it cant. At some point there could be a large strain on natural resources? At some point its reasonable to think we could have issues sustaining ourselves on this planet. Now if you have everyone comfy, when the time comes who would know? We have government that only lies? Now if you were powerful and wanted to survive you would need a plan. They seem to have a plan, just make sure YOU stay calm. Just look at all the animal die-offs in the last few years and you will start to understand, im not convinced its all natural, although it could be that we are just really fucking stupid, but somehow I doubt it.
Excuse me, but I disagree. EACH and EVERY powerful nation has collapsed historically when their financials ran out of control. The Romans, the Spanish, the Dutch, the English, ..... all imploded and lost their status of world currency because of debasing of their fiat. The USA is long overdue.
Years ago when I was first starting out, I had a friend who always had a new car and then bought his first house, etc. I always worked on my own shitty car to get by and just couldn't understand how he did it. When I talked to him about, he explained that he never even thought about the total price of the car but only the monthly payment. I just couldn't comprehend living like that, I had always been taught that if you can't save the money to buy something you shouldn't buy it. That was the first time that I realized that savers were suckers in an upside down economy.
Thank goodness I already bought my $12.95 Chinese watch. Because in six months, and after the hyperinflation kicks in, it would probably cost a lot more. Such a deal. And thanks, Peter. Most of us agree and know you are right. But it isn't the Fox news and CBS and ABC and MSNBC watchers. They're doomed. And as far as I'm concerned, they earned it.
No one knows the timing of the collapse, but there does seem to be a pattern developing. The last two "financial crises" have happened right inbetween the changing of the puppets, I mean presidents. Maybe this was planned so that nobody knew who to blame. Also interesting is that the presidencies flipped to different sides of the coin each time...Clinton(D) to Bush(R) to Obama(D). I suspect this was also done to keep the sheep confused. If the pattern holds we should get the next crises around latter part of 16 as Obama is leaving and the next puppet republican is getting set to take over...probably Trump. He'll claim to have the answers but will only serve to carry on the agenda of the deep state.
You could be right about this.
His post is most sentient and correct.
After the FEDS QE ran out the ECB started QE and will buy back 60 Billion a month till 2017. The markets are fraudulent and living on QE FUMES. They will not let this thing implode untill they are ready for it to implode. That's when CASH goes awway with a new currency system. So big brother can watch every penny you spend and where you spend it.
I'll let you in on a little secret.
Cash has already all but disappeared. My wife runs a small business and 99% of her customers pay with eftpos, debit or credit cards. Cash! What the hell is that.
can i get a reciept for that?
Who am I to say it, but I say it is time for The Collapse to at long last shit or get off the pot. This Collapse is the tease of teases.
We've been living off debt since 1913....money is debt. Come on Pete....get with the program....
J.P. Morgan analysts wrote that the three best leading indicators for recession have been credit spreads, the shape of the yield curve and profit margins.
Here are some signs of a coming recession.
1. Investors in high-yield bonds are expecting to see their first negative return since the start of the credit crisis in 2008.
http://www.marketwatch.com/story/deteriorating-junk-bonds-flash-warning-signs-for-stocks-2015-12-07?dist=afterbell
2. Factory orders continue to drop
http://www.zerohedge.com/news/2015-10-02/us-factory-orders-flash-recession-warning-drop-yoy-10th-month-row
3. Default risk spikes
http://www.zerohedge.com/news/2015-10-02/us-financials-default-risk-spikes-2-year-high
4. M&A set record
http://michaelekelley.com/2015/05/29/mergers-and-acquisitions-set-record/
5. Iron ore prices tumble
http://www.marketwatch.com/story/iron-ore-prices-keep-crashing-adding-to-global-growth-fears-2015-11-30
6. Baltic dry shipping index tumbles
http://www.marketwatch.com/story/shipping-index-falls-to-all-time-low-stoking-fears-about-global-growth-2015-11-19
Here is how to prepare.
http://michaelekelley.com/2014/10/16/8-things-to-do-when-recession-happens/
Here is how to get your mind off this stuff.
http://michaelekelley.com/category/humor/
Good luck!
World War 111 will be the 'trigger' and that is looming fast - If an uncorrupted economy or a 'FREE' market had anything to do with it - we would have died years ago !
With the dollar rising against all other currencies, this country will probably be the last domino to fall. That's at least a few years away.
Prices are going up. Leather and cotton are priced very high. Amazon will reflect this. Good quality products are not being offered to USD holders at a reasonable price if at all.
Peter is the only honest comenatator, investor out there.
down down down there's a burning ring of fiyaa...a ring of fiya
This puppy is going down big time, not sure when, and Mr Yellen won't be raising rates, otherwise it goes down the next day!
The insanity can continue longer than you can stay solvent.
Peter Schiff has never swayed from his convictions. ...goes on media and they line up these shill, MSM, cluelesss FCK Faces to ridicule him and try to bring him down.....but he kerps his cool and he debates them with facts and holds his own against all.....mind you, they did the same shit to Pento and Kirby until there were never invited back for telling the truth.
Peter Schiff is an honorable man...inspiring and genuine....listen to his message, pick the points that make sense to you, keep educating yourself and stacking, and most importantly, GTFO of the fiat system before you lose it all.....
Btw, just got delivery of 'The Great Depression - A Diary' by Benjamin Roth.....holy shit at the parallels and similarities between the business, economic, monetary and fiscal conditions leading up to The Great Depression and today.
Anyone who thinks we aren't headed for a crash and depression bigger than the big one, is in for a life-changing extraordinarily painful lesson.
Yes, OZ, that's true. However look at the insanity of war that's building everywhere. I think America knows its over and will take down its competitors on the way out. Even five years ago who would have thought this great country would hire and suppy the ISIS fanatics and set them loose against innocents. The leadership is depraved. Does anyone really think they have a grip on any of it? Unemployment is 5%. Nobody believes that. I think the responsible people have left the room and turned it over to the crazies. There's no leadership, no plan - nothing. Not one candidate for Prez even mentions creating jobs. They know its impossible to resuscitate the real economy.
What exactly is the difference between 20 trillion in debt and 50 trillion in debt?
It is probably the same as the difference between 20 billion in debt and 50 billion in debt or 20 million in debt and 50 million in debt.
The issue here is that the bankers believe that they can just keep adding zeros and people in general have a problem understanding large numbers.
People such as Schiff either cannot comprehend large numbers themselves or are just Chicken Littles who would not know what to do if they had to find honest work. Maybe they think they are helping by screaming "fire" all the time, but it sure doesn't feel like help.
Look up and see what they did to Peter's old man. Schiff knows.
Bullshit, man. There are 330 million Americans, 19 trillion in public debt. That's about 57.600 US$ PER CITIZEN. PUBLIC debt only. Add corporate and private debt, just double it for reasons of simplicity. Say 100 grand per person. The difference between 100 grand per head ( where each "head" makes say 30 grand/year and dropping ) and a million in debt/head is quite obvious to me.
Cougar_w: 2012
These fuckers are going to print hard enough to wake the dead. They'll print like mo'fos, print like mad men, print like fly pimps. Print until their eyes bleed.
They will print via the swaps, via bank bailouts and mergers, via fixed Treasury yields, via real honest-to-God negative interest rates, via loans to banks on no collateral, via payroll tax reductions, and in the end via actual fiat paper instruments which they might very well drop in bails from actual mutherfucking helicopters.
They will not give two figs what anyone thinks.
Here is why.
Because this is the Goddamned end of it my friend. There is no accounting beyond this point. There will be no history of it. No one to take notes of rates of exchange, or of the graft and violence, nobody to worry about the deficit or the GDP or the national debt of any nation large or small under the blazing Goddamned sun.
End. Of. It. Does anyone bitch about how Rome totally debased their coinage at the end? Hell no. But whoever did it had enough to hand and grabbed some land with a nice vineyard and sat back and waited for the Middle Ages to start 700 years further on.
And that's what a singularity is about. Anything that passes through is striped of all meaning. Nothing we think is important now will remain so beyond the event horizon. Nobody will remember, nobody will write about it, nobody will be held to any standard. Ever for evar.
So yeah, they'll print like the mad crazed terrorists they are. Because they have nothing to lose, and maybe something to gain. Maybe a dollar. Maybe a day. Maybe a slim chance to escape with some of the loot. Whatever the fuck advantage they see in it, for themselves and their elite crap wanking buddies, they will full-on-full-time-fucking do it to advantage.
Watch for it, Dawg. It's totally on this time, on like Donkey Kong. And when the dust is settled in a generation hence it's going to have become another unbelievable episode among the ages of men.
Not to nitpick...
But as fast as Diocletian and his successors clipped coins, prices rose even faster. So much so that both government and commoner were continually in a bind.
So taxes rose. They rose until most people could pay them and eat.
So they began defecting to the barbarians.
And the government instituted travel controls, tying people to the land on which they owed taxes.
Still they tried to escape....until the penalty for abandoning the land and tax bills was CRUCIFIXION.
Then they sent away their kids, so their tax bills would die with them.
So the government made the tax bills hereditary.
But it didn't work. Because the government itself was the problem.
So, it collapsed anyway.
And the Middle Ages started the very next day. (Not years or Centuries later).
I like your brief history of the DAFOTRE, but what started up the very next day were the DARK Ages - those times which are largely impenetrable to us because very few people outside the Church could make any written record of anything.
But, after a few hundred years, the great days of Libertarianism passed away, and we progessed to the Middle Ages, which had towering Gothic spires, horses wearing pajamas and all that cool stuff.
"Print hard to wake yhe dead"
That's gold!
Your post is a good one..I also have come to the conclusion they wiil print till it comes down....the fact, that's exactly what they're doing right now. ....I give it around 2017/2018 because they can still print
Schiff is right...and perhaps even a little too optimistic. He believes that as a society we're servicing the debt at ZIRP.
I don't.
I think that the collapse in commodities, transport, and manufacturing is testament.
We're not servicing it. If we were there would be capital equipment turnover. Caterpillars position proves we're not. The default cascade simply has not yet reached the major banking centers... So it still looks like a cyclical slow down.
Schiff is right...and perhaps even a little too optimistic. He believes that as a society we're servicing the debt at ZIRP.
I don't.
I think that the collapse in commodities, transport, and manufacturing is testament.
We're not servicing it. If we were there would be capital equipment turnover. Caterpillars position proves we're not. The default cascade simply has not yet reached the major banking centers... So it still looks like a cyclical slow down.
Just keep telling anyone that has the nerve to listen and know what time it is, your thoughts Peter.
MY MAIN MAN and Peter Schiff...you cannot go wrong
The 2nd amendment and bail-ins aren't a good match for each other. We MUST hold out longer than they can. At any cost.
Yes, something serious is coming to America - and the World. But it's impossible to know the timing.
I would happily join the "doom and gloomers" ... but to be honest, when the SHTF I have a feeling things are going to be super ugly. I do not think that Americans will handle this very well.
Be Practical.
Put some spare food and water in your pantry. Stash some spare gasoline in a SAFE place. Store away some cash. And get yourself a bicycle. If there are long lines at the gas pumps, you may need a bicycle.
Are things going to get better? No they are going to get Bizzarre..... Everyone and everything will be affected. How do you think a nation that was too lazy to adopt the metric system will adapt to shitp that is hitting the shore?
Metrics are the ultimate in lazy? You have to do work and really think with the english system? METRICs are for followers.
Hmmm, interesting. Good Mavrick Puritan work ethic "work hard" perspective for not adopting metric system. I admit you get more bang for your buck at the gas pump in gallons vs liters.
Does anybody know of an info-graphic (Like Mike Maloney did with money creation) on the General Collateral / Repo / Reverse Repo / IOER mechanic? I'm not getting an understanding of it from words.
I imagine China and Russia are constantly monitoring to figure out the best time and manner to let the Western economies crash without a nuclear war as a finale.
Not much to monitor for them:
“Never interfere with an enemy when he's in the process of destroying himself.”
"... try to find the WALMART of China ..." - Peter Schiff
(wtf)
(good luck with that trade)
I blame the Muslims
blame the Jews first - far more culpability than Muslims -or anyone else.
Yes, Chuck baldwin talks about this in depth in his latest message...definately worth the listen.
https://www.youtube.com/watch?v=ygMFMLvjpCQ
Must be the weather.
When is this collapse going to occur? 1 year/5 years/10 years?
The way this is worded, the collapse will be global. The global economy is an entwined house of cards.
But how are we supposed to trust this prediction over similar predictions that are made every week of every year?
Around the time WW3 get nuclear.
I'd say 5 years. One year is kind of impossible because that's an election year and all the election spending, like pamphlets, little flags, radio, and TV spots etc paper over the real situation. The way things develop may well cause a reduced interest in buying US bonds when the yield is so low and the repayment can only be done with new bonds, true Ponzi. As the main purchasers of US bonds (China, Russia, Brazil, Japan) must turn away from this kind of investment, only US sources will buy them. These, however, could never do it forever, but the hostilities against Russia and China make it impossible forein buyers Brazil and Japan need the money they have for themselves. 10 years is too long for a Ponzi to continue.
Maybe this is why we see them carving out WWIII because that masks everything.
Failing bond sales could be a trigger. At the moment the central banks do each other favours and buy each others bonds with printed money. This kindergarden play could continue for a while. I rather look at the stock market. Central banks did replace fixed income with wealth increase by rising stock prices, well they attempted to do that. In order to make the thing look more credible the central banks are buying now the central banks flagship shares such as Apple. Even the Swiss CB is doing it. I take that as an another indication that albeit purportedly independend from each other it is a stealth organization - possibly illegal from an anti-trust perspective because they jointly manipulate prices. Unfortunately the anti-trust authorities do not have the guts to demand the removal of CB's special rights which exempt them from law. But I am loosing track: I remember the days when 100.000.- Deutsch Mark yielded 10.000.- per annum. Later than 8.000.- than 6.000.-. Today zero. In a fixed income world (example 5%) you harvest 50.000.- from 100.000.- investment every 10 years and your cow lives forever. In the new "apple" world you dont get any dividends. If you need money you slaughter your cow. To keep the illusion alive the central banks have to drive up the value of the CB flagship stocks every year by 10%. The general stock market will not follow and the value of the CB's flagship stocks will distance itself more and more from the general market. The management of said companies will fall asleep because of the automatic rise of the their stocks and the companies will be (and are already) hollow promises. The retired and their fonds will need to sell the shares to finance expenses. Over time the shares of the CB's flagship stocks will be predominantly owned by the central banks. That bullshit is not going to work either. No contribution without a big thanks to Peter Schiff - one of the few remaining true Americans.
It's all a game.
But did you hear about this? why not? Find of the centruy and blows their paradigm out of the water.
https://theyoungearth.wordpress.com/2015/10/16/t-rex-soft-tissue-find-of...
yes, [another] crash is absolutely coming
i know exactly WHEN that will happen
r
https://enronnext101.wordpress.com/
I gotta pay 200.00 to know when? Come on man, ZH deserves the 411.
If it all comes crashing down (which it will) its all by design.
They finally figured out that an "Everything is beautiful, everyone is equal world doesn't work. Everything is beautiful, everyone is equal = everything and everyone is weak.
I'm not into reading tea leaves either, but ever since the book Digital Mantras I can't help but feel market trends. <grin>
down-n-now.jpg
The above is a jpg screen-grab from Google News called "dow-n-now." At the granularity currently set, I can see one definite pattern. It appears to be exponential. The correlation in the view is between the run-up to the 2007-08 Downturn and 2015's roller-coaster. The red line is Simple Moving Average.
At deeper granularity one may also find this pattern in the run-up to October 1987 (crash), and the Dot Com Bubble (correction) of 2001 and beyond.
The article that appeared next to the Dow graph: http://www.thestreet.com/story/13387842/1/why-the-dow-jones-industrial-average-could-begin-a-70-decline-in-the-next-few-weeks.html
Great graph!!
Here's a direct link
http://s.thestreet.com/files/tsc/v2008/photos/charts/Dow-Megaphone-from-...
? Chuck Palahniuk, Fight Club
Schiff is of course right.
But the scum at the Fed will continue to sodomise main street to keep the whole house of cards propped up. This financial engineering has gone too far to be easily unwound.
Has anyone noticed the deterioration in the stock indexes other than the big ten like FB and other tech firms. The MLP sector is absolutely crushed with AMLP in freefall. Propane companies like SPH are yielding 13% and still falling. These guys collect a toll on energy and are not in financial danger. David Stockman says the govt is buying equities to prop it all up - basically index futures which are dominated by the big names. Something really weird is going on. What really concerns me is the neocons pushing Russia up against the wall and threating its existence. That's not smart but John McCain is running foreign policy. He hired team ISIS.
Think about the acronym: FANG: Facebook, Apple, Netflix, Google
(sucking the blood out of the markets)
Check please.
pooplicate
Hugs 3000 can poop out new US dollahs for everyone to enjoy.
A time is coming when many of you will be so poor you will be forced to eat rich people's poo ...
Gold does not show a collapse.
Schiff is the man. I remember when he took down the National Inflation Association as pump and dumpers. Hes the main reason Im awake now. Thanks Peter for all you've done over the years to inform people.
After we arrest the scum that currently occupy it, We should rename the IRS headquarters building after your dad too.
I said the govt will print a new dollar but the question is will we accept it. Maybe only at the point of a gun.
Japan is living on QE for 10 years
dunno where it will end
Think. If a dollar is equal to a second in time - a trillion dollars is close to 33,000 years of seconds. It is surreal to think of repayment
Just as an individual can on for years paying 75% of his income to interest (mortgage, credit cards, car payments, student loans), so can a country.
I never thought about this before, but if the people who are making money off these interest payments have more political clout than the people paying it, the situation will go on for a long time.
President Obama had eight years to get the nation's finances on a more stable footing, but all he did is run the country into the ground! THIS is his legacy!
smell the coffee-he is a stooge following order from those far above him...
Long barbed wire. If there is any longing and shorting to do when the SHTF.
I wouldn't be too hard on Schiff. He's fundamentally correct.
But timing these markets is impossible. It's like trying to determine when a rigged casino will fold.
The other central banks are working in tandem with the Fed. That's why the can has been kicked down the road for so long.
Meanwhile, the BRICS nations have spent the past few years putting a new trade infrastructure in place. That has taken time and has included a development bank, alternatives to the SWIFT system, currency swap hubs and other mechanisms.
For example, China launched its international payment system in October, as explained in the following article from Bloomberg.com: http://www.bloomberg.com/news/articles/2015-10-08/china-starts-cross-bor...
the banking mafia always do this - and then they try and start a big war to cover it up
Well, no shit, Shiff. When will people ever wake up to the fact that the bankers have fooled us all these years instituting a monetary system in which the supply of money depends almost entirely on debt - for every dollar in circulation, there is a dollar of debt. Such a system is simply not sustainable, and no amount of 'adjustments' will solve that basic problem.
Get out from under the banks - problem solved.
This guy always tells the same year after year! He will be right sooner or later. I don't necessarily disagree with him but timing is key in investing!
I can tell everyone exactly when the collapse will happen, 6 months after I retire. I am in really good shape with finances but I just know those weasels in DC will screw everyone over when I won't be able to do anything about it.
I agree that goverment is a problem, but Schiff claims that it is the ONLY problem.
Then, what the K-Street is all about?
Did the "free" or "invisible hand" of matket rather outsourced most of good paying jobs out of USA?
Was it that tax burdens, regulations made big corps, or any other that could do it, or a was it unchallenged quest for profit, and (the only) responsibility to share holders?
a broken clock will eventually be right.