Wake Up Call: Bank Bailouts and the Looming Threat to the Dollar – Peter Schiff

Amid the wide-reaching crisis that has already crashed several large banks and put more at risk, the CEO of Euro Pacific Asset Management, Peter Schiff, talks about the bank bailout and the March Federal Reserve meeting. According to Peter Schiff, the bailout will have a negative impact on everyone as it will ultimately lead to a devaluation of the dollar, causing inflation to skyrocket. Meanwhile, Jerome Powell, during a press conference after the March FOMC meeting, claimed that the banking system is “sound and resilient.” However, Schiff disagrees, stating that the system is not as sound as it may seem. With inflation devaluing people’s money, they will likely want to withdraw it from banks since the interest rates won’t be high enough to compensate for the loss.
According to Peter Schiff “The dollar is being debased in order to fund the bank bailouts.”
As per Schiff, the government intervened in the crisis by implementing quantitative easing and reducing interest rates to 0%. This led to banks investing heavily in long-term Treasuries and mortgage-backed securities, which had low yields.
Recently Peter Schiff pointed out on his twitter that “Powell claims the FDIC has all the bank deposits covered, but who’s insuring the FDIC? They’re broke. The Fed will have to bail out the FDIC, print money, and inflate the economy”.

#bitcoin
#TraditionalBanking
#Investment
#PortfolioDiversification
#FederalReserve
#Cryptocurrency
#FinancialInsights
#USdollar
#Geopolitics
#MarketTrends

*Disclaimer:* Unless specifically disclosed, all information available on The Finance Show and its affiliates or partners should be considered as non-commercial in nature. None of the content produced by The Finance Show should be considered an endorsement, offer or recommendation to buy or sell securities. The Finance Show is not registered with any financial or securities regulatory authority in Canada, the US, Europe, or the UK, and does not provide, nor claim to provide, investment advice or recommendations to any consumer of the content that The Finance Show produces and publicizes. Always do your own due diligence and/or consult a qualified legal, tax, or investment professional if personal advice is deemed necessary.

DISCLAIMER 2:
ANYTHING THAT I SHOW, DISCUSS, AND OR SHOWCASE ON THIS CHANNEL IS WHAT I DO AND HOW I DO OR FEEL ABOUT THINGS. YOU MUST REMEMBER TO DO YOUR OWN RESEARCH AND DECIDE FOR YOURSELF IF WHAT YOU SEE OR HEAR ON THIS PLATFORM IS RIGHT FOR YOU AS ONLY YOU CAN DECIDE FOR YOURSELF.

Copyright Disclaimer under Section 107 of the copyright act 1976, allowance is made for fair use for purposes such as criticism, comment, news reporting, scholarship, and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. Non-profit, educational or personal use tips the balance in favor of fair use….(read more)

LEARN MORE ABOUT: Bank Failures

REVEALED: Best Investment During Inflation

HOW TO INVEST IN GOLD: Gold IRA Investing

HOW TO INVEST IN SILVER: Silver IRA Investing

Wake Up Call: Bank Bailouts and the Looming Threat to the Dollar – Peter Schiff

In his book, “The Real Crash: America’s Coming Bankruptcy – How to Save Yourself and Your Country,” financial expert Peter Schiff sounds a wake-up call to the impending danger to the American economy. With experience predicting the 2008 financial crisis, Schiff believes that the next major crisis will have an even more profound impact on the US dollar and the entire global economy.

In “The Real Crash,” Schiff highlights one of the significant issues he believes will exacerbate the next economic meltdown – the bank bailouts. He highlights the danger of the government’s reaction to financial crises, particularly their decision to bail out large banks and corporations deemed “too big to fail.” Schiff argues that this approach not only protects inefficient and reckless businesses but also enables moral hazard, where the expectation of future bailouts drives risky behavior.

Schiff believes that the bailouts of 2008 were just a preview of the real crash that is yet to come. He argues that the excessive government intervention and monetary policy implemented in the aftermath of the crisis have only postponed the inevitable economic reckoning. The excessive money printing, low-interest rates, and quantitative easing have inflated asset bubbles and created a false sense of stability.

One of the main concerns Schiff expresses is the enormous debt burden the United States is accumulating. He argues that the growing national debt is unsustainable and will eventually lead to a collapse of the US dollar. As the dollar’s value erodes, inflation will skyrocket, diminishing the purchasing power of American citizens. Schiff warns that this will have dire consequences for the global economy, as the US dollar is the world’s reserve currency, held in large quantities by central banks and used in most international transactions.

Additionally, Schiff points out the negative ramifications of the Federal Reserve’s loose monetary policy, which distorts market signals and encourages malinvestment. According to Schiff, artificially low-interest rates encourage excessive borrowing and spending, leading to a misallocation of resources and the creation of asset bubbles. This pattern, he argues, is a significant contributing factor to the continual boom and bust cycles experienced by the United States economy.

To counter these imminent threats, Schiff advises individuals to take responsibility for their financial well-being. He encourages readers to invest in assets immune to inflation, such as precious metals like gold and silver. Schiff advocates for reducing personal debt, increasing savings, and diversifying investments abroad to protect against the potential collapse of the US dollar.

Peter Schiff’s warnings about the looming danger to the US economy and the US dollar offer a valuable perspective on the state of the financial system. While his predictions may be controversial, his analysis prompts readers to consider their own financial positions and take proactive measures to mitigate potential risks. “The Real Crash” serves as a wake-up call to rethink government intervention and excessive monetary policy, advocating for a more responsible and sustainable economic approach.