In a conversation on Wednesday with Joe Rogan, Peter Schiff explained the reasons why the American economy is on its way to an economic collapse. Although Americans often want to blame Wall Street, Schiff believes that the government should be blamed.
“I can’t necessarily blame Wall Street for wanting something for nothing but I blame the government for supplying it.”
Schiff then went on to explain that the federal government not only wants to keep its supporters happy but it also wants to make sure that it continues to successfully deceive Americans.
“The government wants to maintain the illusion of prosperity, the illusion of economic growth and so the way they do that now is through financial markets, through assets. They get the stock market to go up, they get the real estate market to go up and somehow they pretend that that means the economy is getting better just because asset prices are rising.”
Schiff then pointed out that the economy is not necessarily getting better when asset prices are going up.
“It’s not like we’ve got more factories turning out more stuff. All that they do is they get asset prices to rise so that people can borrow more money against those inflated asset values and then spend it. But we’re buying things that are made in other countries. It doesn’t evidence economic growth here, it evidences the economic growth in the countries who are able to produce all the things that we have to borrow money to consume.”
Schiff then explained what inflating the asset market does to the average American.
“It doesn’t benefit the average American. That’s why the average American is suffering as result of this massive transfer of wealth that is emanating from government, from the federal reserve and from what’s happening in Congress and the White House.”
Schiff goes on to say in the conversation that the financial policies of the government are a complete failure.
“Everything they are doing now is just setting the stage for a economic disaster that is going to be much worse than what we had in 2008.”