Peter Schiff: Economy ‘Stuck in Serious Recession’

Thursday, 31 Jan 2013 08:18 AM

By Dan Weil

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Officially, the last recession ended in June 2009. But Peter Schiff, CEO of Euro Pacific Capital, doesn’t see it that way.

And he thinks Wednesday’s gross domestic product (GDP) report, which shows the economy contracted 0.1 percent in the fourth quarter, backs him up.

“The weaker-than-expected GDP report shows just how out of touch most professional economists remain with respect to the fundamental weakness of the U.S. economy,” Schiff says in a statement.

Editor's Note:
 
Prophetic Economist Warns: “It’s Curtains for America.” See Evidence.

“After more than four years of nearly never-ending monetary stimulus and more than $5 trillion worth of new federal debt, the economy remains stuck in a serious recession. The report shows that federal stimulus and deficit spending can't create sustainable economic growth.”

Meanwhile, trends in financial markets will “make recovery that much more difficult,” he says.

For example, the 10-year Treasury yield reached a nine-month high of 2.03 percent Wednesday. Meanwhile, the dollar hit a 14-month low against the euro, which soared to $1.3587. And oil prices are approaching $100 a barrel.

Others hold bearish views of the economy too, though perhaps not quite as bleak as Schiff’s.

Financial commentator Robert Wiedemer thinks the government may have overestimated the fourth-quarter GDP by underestimating inflation. Its calculations assumed a 0.6 percent inflation rate, while the Consumer Price Index rose 1.7 percent last year.

“I think this number [the 0.1 percent GDP decline] could actually be significantly worse than what the government is saying,” Wiedemer tells Newsmax in an exclusive interview.

Editor's Note: Prophetic Economist Warns: “It’s Curtains for America.” See Evidence.

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