“
Peter Schiff has issued a warning about a looming financial crisis, which he believes will be the largest in US and global history. He suggests that the bankruptcies of
SVB and Signature Bank are early signs of the crisis, but that few in the mainstream media are calling it an economic crisis. Schiff compares the current situation to the 2008 financial crash, stating that it is a banking crisis caused by excessive debt during a bubble, which borrowers were unable to pay back when it burst. He notes that this is happening again, with serious financial implications.
Schiff claims that the banks will not be able to cope with a major economic downturn combined with rising inflation. If inflation devalues money, people will want to withdraw their funds from banks, but the banks will not be able to pay them back. Schiff predicts that this will lead to a new systemic episode, much larger than the last one. He argues that everyone is at risk of losing their savings, even those with solvent banks.
Schiff suggests that the only way people can access their money is if the Fed prints it. However, if the Fed starts printing money, it will destroy its value rapidly and worsen inflation. He is concerned that Treasury Secretary Yellen and President Biden insist that taxpayers will not foot the bill for a bailout, and he wonders who will pay for it instead.
Schiff notes that the dollar is under enormous pressure, with nations around the world dumping it for local currencies in international trade and finance. He argues that the government is devaluing the dollar to finance the banks' bailouts. In just two weeks, the Federal Reserve added nearly $400 billion to its balance sheet, which Schiff describes as classic inflation. He believes that this will destroy the value of all the money already in circulation, decreasing everyone's salary and purchasing power.
Schiff concludes that these bailouts put everyone's bank deposits at risk, even those with solvent banks. He suggests that the government's refusal to let the banks go bankrupt will lead to inflation becoming the big risk. Schiff warns that everyone who has a bank account will lose their purchasing power, likening the situation to robbing Peter to pay Paul
