America’s ‘house of cards’ financial system that Democrats and RINOS created with decades of lucrative backroom deals for themselves and out-of-control spending on crazy schemes, and by funneling money and jobs out of the country to their foreign pals, may be about to crash down on hard-working Americans who have paid for it all- while the elite partied without a care in the world about what they were destroying.
And now that we are weakened and broke, that is a perfect time for our long-time enemies like the Chinese Communist Party and Iran, many of who helped create these massive social, political, and financial crises, will likely pounce on us.
We are in big danger.
What we face is because of selfish self-interests and the inability to solve problems. Most Democrats and RINOS go into “public service” for access to fame, money, and power- not to safeguard the nation for the people.
That is face. The government’s reckless joyride spending on selfish and stupid ideas is what got us into a nasty mess that technical experts in finance are talking about now.
Mike LaChance reported that according to the investor and financial pundit Peter Schiff, the current economic crisis is eventually going to get worse than the crisis of 2008.
“Schiff suggests that more banks will fail, which will lead to more government bailouts, making inflation even worse.
Listening to Schiff talk, you might get the sense that our current financial system is no stronger than a house of cards.”
LaChance cited a NewsBusters report that had details:
Economist Peter Schiff UNLOADS on Media Reluctance to Call Banking Turmoil a ‘Financial Crisis’
Economist Peter Schiff blasted the media aversion to acknowledging that the ongoing banking turmoil is in fact a “financial crisis” that could be worse than 2008.
Schiff highlighted America’s record-high credit card debt and the failing banks and noted that it wasn’t a coincidence that “both the borrowers and the lenders are broke.” The “reason for that,” said Schiff on the March 21 edition of One America News’ Real America with Dan Ball, “is the Fed.
The Fed kept interest rates artificially low for more than a decade, encouraging people to go deeper and deeper into debt and banks to extend” credit to them. Now, Schiff said the Fed’s incessant number of missteps corralled it into a position where it is being “forced” to “raise interest rates, something that was always going to happen.” In turn, the Fed effectively “created another financial crisis,” Schiff analyzed.
Schiff then turned his sights onto the liberal media trying to gaslight people on the real severity of America’s financial situation and deflect away from the horrid memories of 2008. “The media is reluctant to call this a financial crisis. They keep saying it’s a banking crisis.
Benzinga reported on Schiff as well:
Peter Schiff Recalls Warning About ‘Worthless’ Fed Stress Tests: ‘All Congress Or Investors Had To Do Was Follow Me On Twitter’
“Inflation, measured as the quarterly change in the CPI and reported as an annualized rate, falls from below 3-1/4 percent at the end of 2022 to about 1-1/4 percent in the third quarter of 2023 and then gradually increases to above 1-1/2 percent by the end of the scenario,” the scenario assumes.
At the same time, long-term interest rates are also assumed to decline. “Long-term interest rates, as measured by the 10-year Treasury yield, fall by nearly 3-1/4 percentage points by the second quarter of 2023, and then gradually rise in late 2023 to about 1-1/2 percent by the end of the scenario,” he said.
Benzinga’s Take: What remains to be seen is the probability of these assumptions panning out under the current economic environment. Will long-term rates fall and will inflation come down at a time when a recession occurs somewhere later this year? This would be the question most economists would be asking themselves before considering an adverse stress test scenario. Otherwise, as Schiff suggests, no major bank may survive stagflation.
Schiff’s Take: Citing his old tweet, Schiff took a sarcastic stance on what investors and Congress should have done instead of depending on the central bank in the wake of the banking crisis.
“I warned on Twitter precisely about what the #Fed failed to test for almost three years ago. So instead of relying on the Fed all #Congress or investors had to do was follow me on Twitter and nothing that happened to #SVB or #SignatureBank would have come as a surprise,” Schiff tweeted.
The Fed's stress tests are worthless. The most adverse scenario assumes both inflation & long-term interest rates fall. During the next recession both inflation & long-term interest rates will rise. No major bank will survive stagflation. That's why the Fed doesn't test for it!
— Peter Schiff (@PeterSchiff) June 21, 2019
Zero Hedge reported on a video they found at SchiffGold.com:
Peter Schiff appeared on NTD News to talk about the bank bailout and the March Federal Reserve meeting. During the conversation, Peter explained that everybody is going to pay for these bailouts because they will ultimately devalue the dollar as inflation skyrockets.
During his press conference after the March FOMC meeting, Jerome Powell said the banking system is “sound and resilient.” Peter said it’s not sound at all.
It’s a house of cards that is starting to collapse.”
