"Peter Schiff .....
The CEO and chief global strategist for Euro Pacific Capital, and noted perma-bear, said that serious economic destruction is just a few months away.
"I think the Fed is going to have negative interest rates before the election because we're going to be in a serious recession," Schiff told Business Insider on Friday.
In fact, Schiff said that we may already be in recession and this one is going to be a doozy.
"We're in worse shape now than we were in 2007," he said.
Chief among his concerns is a growing bubble of debt that has accumulated in the US, which he said "is even bigger than the real-estate bubble" that burst in 2008.
He said that there isn't as much debt in the real-estate sector, but the total sum of debt from student loans, auto loans, government debt, and the Fed's balance sheet is massive. According to Schiff, this total is by far bigger than what we saw before either the housing or tech bubbles.
Once this bubble pops, and Schiff fears that it may already have, the following recession will force the Federal Reserve's hand. This will make them pull interest rates into negative territory, much like the Bank of Japan's move on Friday.
"The Fed is going to go negative because they want to do something stimulative to try and boost the economy so the Republicans — or someone like Donald Trump — don't just walk away with the election," Schiff told us." yahoo
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