![\"Economist](\"https:\/\/www.cryptocabaret.com\/wp-content\/uploads\/2022\/10\/peter-schiff-dollar-768x432.jpg\")
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Economist Peter Schiff has warned that the U.S. dollar will crash. Noting that the U.S. is \u201cin a much bigger fiscal mess than Great Britain,\u201d with a much bigger debt problem, Schiff stressed: \u201cCan we possibly repay this debt? Of course not. Repaying the debt is impossible. So, what\u2019s going to happen? We\u2019re going to default.\u201d<\/strong><\/p>\n Gold bug and economist Peter Schiff shared his outlook for the U.S. dollar in a podcast titled \u201cWhen This Sucker\u2019s Rally Ends, the Dollar Will Crash,\u201d published Saturday. He explained that the U.S. has major problems that will lead to the crash of the U.S. dollar.<\/p>\n Referencing the situation in Britain<\/a>, Schiff said the U.K. is concerned about increasing debts. The country\u2019s debt-to-GDP ratio is around 85% and former Prime Minister Liz Truss<\/a> \u201cthreatened to send British debt to GDP even higher,\u201d the economist described, noting that \u201cinvestors rightly dumped the pound.\u201d However, he added: \u201cThey sold pounds for dollars \u2026 The irony is they were buying dollars despite the fact that the United States has an even bigger debt problem.\u201d<\/p>\n The U.S. national debt is now above $31 trillion and the government ran a $1.38 trillion budget deficit in the fiscal year 2022. Schiff explained that the debt-to-GDP ratio in the U.S. is actually higher than 125%. When factoring in state and local debt, the ratio balloons to 140%, he detailed, elaborating:<\/p>\n We\u2019re in a much bigger fiscal mess than Great Britain. So, selling pounds and buying dollars because you\u2019re worried that Britain has too much debt is jumping from the frying pan into the fire.<\/p>\n<\/blockquote>\n Schiff stressed that it is ridiculous that people bought U.S. treasuries as a safe haven, adding that it is also absurd to sell a country\u2019s currency due to debt problems and buy dollars when the U.S. has even more debt.<\/p>\n \u201cIn the U.K. pretty much all the debt is on a national level. They don\u2019t have the states like we do and they don\u2019t have all the municipalities, so we have so many levels of debt,\u201d he pointed out. Emphasizing that governments are funding themselves from the same tax base, he opined:<\/p>\n These governments are trying to get blood from the same turnips. Because Americans are broke. We have no savings. So, can we possibly repay this debt? Of course not. Repaying the debt is impossible. So, what\u2019s going to happen? We\u2019re going to default.<\/p>\n<\/blockquote>\n The economist proceeded to detail that there are \u201conly two possible ways we can default \u2014 the honest way and the dishonest way, but either is a disaster if you own U.S. treasuries.\u201d<\/p>\n Schiff continued: \u201cThe honest way is just to admit that we can\u2019t pay and we default. We restructure the debt and we tell our creditors.\u201d However, he believes that politicians do not have the integrity to do it, noting:<\/p>\n They\u2019re going to take the coward\u2019s way out. They\u2019re going to print. They\u2019re going to inflate the debt away \u2026 It\u2019s crazy for anyone to believe that the Fed is going succeed in reducing inflation back down to 2%. It can\u2019t succeed.<\/p>\n<\/blockquote>\n He further cautioned that as the Federal Reserve raises interest rates, the problem gets bigger. His statement echoes a warning<\/a> he made recently that the Fed\u2019s action could lead to market crashes, a massive financial crisis, and a severe recession.<\/p>\n Schiff also tweeted Wednesday: \u201cThe U.S. merchandise trade deficit unexpectedly jumped by 5.7% in Sept., as imports rose by .8% and exports fell by 1.5%, breaking a five-month streak of falling trade deficits.\u201d He concluded:<\/p>\n Now that the dollar is weakening, future trade deficit will widen, causing the dollar to fall further.<\/p>\n<\/blockquote>\nPeter Schiff Discusses U.S. Dollar Crashing<\/h2>\n
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Schiff Sees 2 Possible Ways the U.S. Can Default<\/h2>\n
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