Economist Peter Schiff Warns of US Dollar Crisis and 'Catastrophic End' — National Debt Will 'Spiral out of Control'

Economist Peter Schiff has warned of an impending U.S. dollar crisis. He predicted that with the new debt ceiling deal, “reckless government spending and borrowing will continue until a sovereign debt and U.S. dollar crisis bring it to a catastrophic end.”

Peter Schiff’s Latest Economic, Dollar Crisis Warnings

Economist and gold bug Peter Schiff has taken to Twitter to voice concerns about the U.S. economy and the impending U.S. dollar crisis. His warnings followed the recent debt ceiling deal reached to prevent the U.S. from potentially defaulting on its debt obligations.

“Now that the fake debt ceiling crisis is behind us, we can focus on the real crisis that lies ahead,” Schiff tweeted Wednesday, emphasizing:

Suspending the debt ceiling yet again means that reckless government spending and borrowing will continue until a sovereign debt and U.S. dollar crisis brings it to a catastrophic end.

“The $1.5 trillion the debt ceiling deal purports to save over 10 years amounts to less than 5% of what the deficit will be over that decade. But that’s only if the unrealistic rosy economic assumption comes true. More realistic assumptions result in a surge in the deficit instead,” the economist stressed.

He previously warned that “without any substantive cuts to government spending,” raising the debt ceiling “makes a real sovereign debt and U.S. dollar crisis inevitable.”

Schiff has also cautioned about the U.S. national debt. “Now that a bogus debt ceiling deal has been reached, it should be apparent that Congress will never rein in excessive government spending or deficits,” he tweeted Tuesday, predicting:

The national debt will spiral out of control, with a sovereign debt and dollar crisis all but guaranteed.

The gold bug has argued that the U.S. will default on its debt and raising the debt ceiling will only make the problem worse. He previously explained that the U.S. could default on its debt obligations in two forms. The first is “an honest default where the government just doesn’t pay back bondholders” and the second is “a dishonest default where we pay with inflation.”

In recent months, Schiff has warned about a much worse financial crisis than the banking crisis, a “massive” recession, and depressions. He also sounded the alarm about the U.S. dollar devaluation and the biggest economic disaster in history. He predicted that a “death blow” is coming for the U.S. dollar and the USD will lose its reserve currency status, advising people to get rid of their U.S. dollars now.

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