Think the U.S. Economy is Safe? This Will Change Your Mind
The Federal Reserve’s reckless monetary policies have damaged the global economy and risk sparking a U.S. dollar collapse in 2015. At least, that’s the opinion of famed market commentator Peter Schiff.
During a speech at the Jackson Hole Summit in August, the renowned economic analyst reiterated many of his previous messages regarding a looming stock market crash and possible economic collapse. The Fed, Schiff argues, has created an asset price bubble which has swallowed up the capital that the economy needs to have a real recovery. (Source: Peter Schiff at Jackson Hole Summit: The Monetary Roach Motel, YouTube, September 24, 2015.)
Essentially advocating for fiscal shock therapy, Schiff explained that the current monetary policy set by the Federal Reserve must be derailed, despite its difficulties, and likened it to a roach motel. This is a metaphor used to describe a business model where it is easy to begin using a certain service but far more difficult to stop, for one technical reason or another.
Schiff maintains that the current monetary policy essentially equates to perpetually kicking a can down the road, which is clearly impossible. Sooner or later, he says, we will be facing an economic catastrophe of epic proportions. It’s best, then, to deal with it now, while it’s relatively manageable as opposed to later when it might very well lead to a complete stock market crash and economic collapse.