American economist Peter Schiff has accused the US government and the Federal Reserve of causing the current inflation, challenging the prevailing belief that rising salaries are to blame. Schiff argues about inflation. He voiced his concerns in an X post on May 20, reiterating his long-standing warnings about inflation.
Schiff claims that the threat of inflation has been “gravely understated” by those attempting to downplay it, describing the current situation as “just the tip of an inflation iceberg.” He predicts an upcoming inflationary depression, or “stagflation,” which he says will surpass previous financial crises, calling it a “recession on steroids.”
Meanwhile, Paul Dietrich, a veteran Wall Street analyst known for predicting the 2008 recession, has also warned of a possible economic downturn. Dietrich highlights several red flags, including unexpectedly high inflation in the first quarter of 2024 and increased market volatility.
Interestingly, Schiff, a noted Bitcoin skeptic, has acknowledged that Bitcoin holders are correct about the Fed and inflation. He argues that many investors are unaware of the current financial crisis and the “far greater currency and sovereign debt crisis it will ultimately become.
These perspectives from Schiff and Dietrich underscore growing concerns about the US economy’s future amidst persistent inflation and potential market instability.
Also Read: Venezuela Halts Crypto Mining to Ensure Reliable Power Supply