As inflation continues, the U.S. is heading towards a massive economic crash, according to stockbroker Peter Schiff.
Schiff, who is the chief economist and global strategist of Euro Pacific Capital, took to Twitter on Thursday to voice his predictions for the U.S. economy.
“Many people have finally [given up] on the idea of a soft landing, and now expect a hard landing,” he tweeted. “But they still don’t get it. The only landing possible is a crash, where everyone on board dies. That’s why the #Fed won’t even attempt to land and give up its pretend #inflation fight.”
In follow-up tweets, Schiff also argued against those claiming that he has not accurately been predicting an economical crisis in America for the last 10 years.
“Those claiming I’ve been wrong about inflation for ten years, so i’m just a stopped clock, still don’t get it,” he tweeted. “I’ve been right for ten years. I just warned early. It’s those who claimed inflation wasn’t a problem, or worst that it was too low, who’ve been wrong for ten years.”
In another tweet, he added: “The political reality is that the U.S. economy will be in a severe recession during the midterm elections in Nov. and it will still be in the same recession during the general election in 2024. The main difference is that in 2024 inflation and the recession will be even worse.”
President Joe Biden has dismissed the idea that a recession is inevitable. In an interview he gave to the Associated Press that was published on Friday, he also added that high inflation was not his fault.
The president pointed to the fact that other countries are also experiencing inflation (although the U.S. annualized rate is one of the highest in the world), and he also touted low unemployment figures.
The U.S. unemployment rate is currently 3.6 percent, while Japan’s is at 2.3 percent, Germany’s is just under three percent, and the U.K.’s is just over four percent.
“They shouldn’t believe a warning,” Biden said as he reflected on the future of the U.S. economy.
“They should just say: ‘Let’s see. Let’s see, which is correct.’ And from my perspective, you talked about a recession. First of all, it’s not inevitable,” Biden added. “Secondly, we’re in a stronger position than any nation in the world to overcome this inflation. It’s bad. Isn’t it kind of interesting?”
“If it’s my fault, why is it the case in every other major industrial country in the world that inflation is higher?” Biden asked.
“You ask yourself that? I’m not being a wise guy. Someone should ask themselves that question. Why? Why is it? If it’s a consequence of our spending, we’ve reduced the deficit. We’ve increased employment, increased pay.”