Peter Schiff claims that a « crisis worse than 2008 » has begun and discusses two painful solutions.

More and more economists, bank executives, and various observers are sounding the alarm about a major financial crisis looming over the United States.

Peter Schiff, who accurately predicted the 2008 financial crisis, is among those expressing concern and once again reiterated his warnings in an interview with Finding Value Finance.

The economist cautioned that the impending crisis "will be much worse than anything we experienced during the 2008 crisis," and he added that it could even surpass the difficulties of the 1970s and possibly rival the Great Depression of the 1930s.

Referring to a "major economic upheaval," he suggested that this crisis will mark "the end of an era where Americans can live beyond their means." He emphasized that "Americans have become a combination of borrowers and spenders," and the government is running "massive trade deficits and budget deficits."

Schiff affirmed that "this crisis is already underway," though many people may not realize it, and he warned that "it's far from over." He predicted that when it concludes, the standard of living for average Americans will be significantly lower.

He anticipates that the current situation will lead to "a sharp drop in the value of the dollar," with "prices increasing dramatically for consumer goods," resulting in Americans consuming much less.

"We won't be using our credit cards to go shopping at Walmart or Amazon; those days will be over. It will require rolling up our sleeves and working hard to save, and many Americans will discover that the government cannot take care of them," the economist stated.

Furthermore, he considered that "the real risk is that the crisis will be attributed to capitalism, and we will turn to socialism, becoming a completely centralized economy like Cuba."

According to him, the U.S. government has only two options.

"One is default and deflation, where the government acknowledges that it's broke and defaults, not paying Treasury bonds," he explained, emphasizing that this would constitute "a massive crisis in itself because the entire economy relies on these Treasury bonds."

In this scenario, he foresees that the prices of all assets, including stocks and real estate, will plummet, resulting in "a wave of bankruptcies and failures, including all major banks," asserting that "they will all be insolvent."

The second option, which Schiff describes as "more politically expedient," is devaluation, with significant monetary printing and a collapsing dollar.

Summing it up as "either devaluation and inflation or default and deflation," the economist cautioned that "if history is any guide, they will choose inflation and devaluation," predicting that the United States will be a "very different" country after the crisis.

When pondering "how much time we have left before the crisis reaches its peak and everyone knows it's a crisis," Schiff estimated that it will likely occur "probably before the presidential election in November 2024."

Regarding investment strategies in the face of the anticipated crisis, Schiff mentioned favoring "the types of assets that performed very well during the 1970s," including "foreign stocks, commodities-related investments" (oil, gas, minerals, industrial precious metals, agriculture), as well as physical precious metals like gold and silver.

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