• Peter Schiff’s Warning: Economist and gold bug Peter Schiff has warned of a financial crisis and a much more severe recession than the Federal Reserve recognizes.
• Inflation Cause: The cause of inflation is the U.S. government and the Federal Reserve acting in concert with one another, where the U.S. government spends money it doesn’t have, and then the Fed prints the money for the government to spend.
• Federal Reserve Chairman Jerome Powell’s Speech: Federal Reserve Chair Jerome Powell claimed that disinflation „has begun“ but is going to take time; however, Schiff argued that this disinflation is transitory.

Peter Schiff’s Warning

Economist and gold bug Peter Schiff has warned of a financial crisis and a much more severe recession than the Federal Reserve recognizes. „The economy is not only going to weaken, but weaken much more than the markets expect,“ he stressed.

Cause of Inflation

According to Peter Schiff, the cause of inflation is a result of an act between two parties – The U.S. government spending money it doesn’t have, and then The Fed printing money for them to spend, which results in inflation.

Federal Reserve Chairman Jerome Powell’s Speech

Federal Reserve Chair Jerome Powell recently spoke on disinflation saying that it has begun but will take time; however, Peter Schiff claims that this disinflation is transitory as he believes that if The Fed chairman believes slowing down economics will cool inflation, he would be wrong as it will fuel fire instead.

Prediction by Peter Schiff

At the end of last year, Peter Schiff predicted that inflation was about to get worse; furthermore he added that The US dollar will crash and The US would default on its debt which could lead to market crashes, massive financial crisis and severe recession according to his prediction.

Conclusion

It remains uncertain what consequences could arise from these warnings by economist Peter Schff; however one thing remains certain – there are greater economic issues at hand which need attention from both The US Government & Federal Reserve before things get worse in terms of finances & economy within US soil .