In the first half of Tuesday’s COAST TO COAST AM show, “CEO of Euro Pacific Capital, radio host and author Peter Schiff commented on the current gyrations of the government, as well as the real financial position of the United States, and why he thinks we’re headed for an implosion. Interestingly, he believes that raising the debt ceiling is part of the problem rather than the solution. “Default is inevitable…anyway. But we’re not going to default because we don’t raise the debt ceiling. We’re going to default because we do raise the debt ceiling,” he remarked, explaining that eventually the US will have so much debt that creditors are going to cease lending the country money. Yet right now, the US doesn’t have to default because it can keep borrowing money from the same people who owe it, he continued.
“Schiff suggested that the US go “cold turkey” on stimulus programs. “We’ve got to let interest rates go up, and then, we’ve got to slash trillions of dollars per year” in government spending including entitlements, national defense, as well as eliminate entire departments like Education and Energy, which could be managed by states, he said. While he predicted the 2008 crisis and housing bubble, he believes that an even bigger crash is coming due to the increased spending and debt. What we’re facing is “an overdose on government stimulus, and death of the currency, which is going to be the death of the economy,” he warned.”