A record breaking Stock Market is distorting a frightening reality. The U.S. is being eaten alive by a horrific cancer that will ultimately destroy the economy and impoverish the vast majority of its citizens. That's according to Peter Schiff, the best selling author and CEO of Euro Pacific Capital, who delivered his harsh warning to investors in a recent interview on Fox Business.
"I think we are heading for a worse economic crisis than we had in 2007" Schiff said. "Your going to have a collapse in the dollar... a huge spike in interest rates... and our whole economy, which is built on the foundation of cheap money, is going to topple when you pull the rug out from under it"
Schiff says that, despite "phony" signs of an economic recovery, the cancer destroying America, stems from a lethal concoction of our $16 trillion federal debt oin its way to $20 trillion and the Fed's never ending money printing. Currently, Bernanke and company is buying $1 trillion of Treasury and mortgage bonds a year. That's about $85 billion per month against a budget deficit that is about the same level.
According to Schiff, these numbers are unsustainable. And the Fed has no credible "Exit Strategy." Eventually interest rates will have to rise and when they do, Schiff says, stocks will tank and bonds dip to nothing. Massive new tax hikes will be imposed and programs and entitlements will be cut to the bone. The $2 Billion budget for your Obama Phones will quickly disappear and so will your Food Stamps! The Crisis is Imminent, Schiff said. "I don't think Obama is going to finish his second term without the bottom dropping out." "The average American and the average Stock Market Investors are oblivious to these problems"
"America is Broke" Schiff added. "We owe trillions. By the end of Obama's second term we will owe over $20 trillion dollars! Look at our Debt to GDP Ratio, the unfunded liabilities. If we were in the Euro Zone, they would kick us out".
Schiff points out that the market gains experienced recently, with the Dow topping 14,000 on its way to setting record highs, are giving investors a false sense of security. These levels of the Dow are also unsustainable with current economic conditions.
"It's not that the stock market is gaining value... it's that our money is losing value. And if you have a debased currency.. a devalued currency, the price of everything goes up! Stocks are no exception," Schiff says.
"The Fed knows that the US Economy is not recovering", Schiff notes, "It's simply being kept from a Collapse by artificial low interest rates and easing. As that support goes, the economy will implode"!!!
REO Capital agrees with Peter Schiff's predictions and suggests you protect your assets with Private Equity Investments that are real assets purchased at deep discounts that take time to show real double digit appreciation in value in a Private Equity Fund. Contact REO Capital, LLC today, to see what unique, niche investments we represent that have passed our Rigorous Due Diligence process.
John Denes
CEO
REO Capital, LLC
www.reocapitalllc.com
johndenes@reocapitalllc.com
248-313-9966
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