The S&P 500 closed down more than 2.4% Monday and the broad market index posted its worst April start since 1929. This slide in the markets caused the worst start since the Great Depression, sparking fears we are on the same path.
The Dow Jones industrial average fell 1.9 percent (or 458 points) as China’s retaliatory tariffs against United States agricultural goods stoked fears of a global trade war. Dow stocks with large international markets now exposed to global tariffs such as Boeing and 3M, led the decliners.
Many market analysts have predicted we will live through another Great Depression, and Peter Schiff says this next one will be far worse than one our ancestors lived through.
“The bad news is, we are going to live through another Great Depression and it’s going to be very different. This will be in many ways, much much worse, than what people had to endure during the Great Depression,” Schiff says.“This is going to be a dollar crisis.”
“The Fed thinks they create economic growth…by [saying] ‘let’s jack up the stock market and then the economy’s going to grow and people are going to go out and spend more money.,’” says Schiff.
“It’s actually doing damage. If you create a bunch of phony wealth, and people end up spending money that they otherwise would have saved, you are undermining economic growth.”
And Schiff, who accurately predicted the 2008 recession, has now predicted the dollar crisis. The dollar is now in a downward spiral thanks to China’s petro-Yuan.
Bespoke Investments Co-Founder Justin Walters, who also noted the historic nature of the close,said in an email that equity fears aren’t likely to abate until earnings arrive.
“Based on recent market action, the bears clearly have control right now,” Walters wrote. “The path of least resistance is lower until something comes along to reverse that trend.”
Schiff, in contrast, says the deep state (those who operate the Federal Reserve) is not afraid to crash the economy on Trump’s watch.
Schiff says “it’s not a good thing” that the economy is going to crash and burn.“Unfortunately, that’s what Trump has inherited from Obama. But it’s not even really just Obama, it’s the federal reserve. It’s the monetary policy that has been passed like a baton from Clinton to Bush to Obama and now to Trump. And we’re near the end of the game and unfortunately, Trump’s gonna be the fall guy. This thing is all gonna collapse while he’s president.”The tax cuts will give Democrats a reason to blame the collapse all on the Republicans, says Schiff.And we are getting close to this collapse. –SHTFPlan
The trade wars with China is also the perfect smokescreen for an economic crash and will allow the mainstream media to wholly blame Trump when it happens.
No comments:
Post a Comment