Economy and Business Politics and Policy U.S.

To Protect America’s Financial Security, Trump Needs Rand Paul on His 2020 Ticket

Peter Schiff, a stock broker who predicted the 2008 financial crisis, says a worse recession is on the way, and the stock market’s plunge this Christmas Eve was proof of that.

There has never been a Christmas Eve where the S&P or Dow Jones fell by as much as 1 percent, yet in 2018 it dropped by 2.9 percent, with the SNP falling by 2.7 percent.

While many financial experts were downplaying the stock market’s collapse on Christmas Eve, Schiff believes they should be panicking, as this is the beginning stage of what will spiral into one of the worst recessions this country has seen.  

Due to the Federal Reserve’s unprecedented policies after the 2008 financial crisis – bailing out big banks through quantitative easing and keeping interest rates too low for too long, a bubble was inflated like never before.

“They [Federal Reserve] created the financial crises by inflating a housing bubble by keeping interest rates too low for too long, well this time they kept them lower even longer, they inflated a far bigger bubble than the one that popped in 08, and now that this one has popped it’s going to be followed by a worse crises.”

On his podcast, Schiff laid out the steps of how this recession will play out.

First it will start with the bare market which we’re currently in, then a recession will begin, and similar to 2008, the Fed will then come to the “rescue” by launching a massive quantitative easing program and lowering the interest rates to zero percent.

However, this time the illusion of recovery won’t work, causing the dollar to collapse and inflation to skyrocket, unable to pay back our debt, the country will enter into a sovereign debt crisis and then the market will collapse, after that, the real crash will start.  

The mainstream narrative that’s painted after and the actions the government takes will make or break this country.

Since President Trump has embraced the growth in the stock market as his doing, the democrats will have an easy time blaming the recession on his conservative policies of deregulation and tax cuts, allowing the far left Bernie/Warren camp to come in and herald their socialists policies as the answer to our problems, meaning that by 2020 and 2024 we could have a socialist as president.

As Schiff point out, if someone like Bernie does get into office, their programs are going to cost a fortune, taxes for corporations and individuals are going to have to go up, and of course, in return, less money will go to the government; the Fed is therefore going to have to provide most of the funding, engaging in debt monetization like it’s never done before. As a result, we’ll never truly be able to get out of the recession and our country will become more socialists than it’s ever been, leading us down a path of endless debt.

“Were gonna have three, four trillion dollar a year deficits, maybe five…and the Fed is gonna have to buy up all those bonds,” Schiff said.

As is the case with Obamacare, once these socialists programs are allowed to fester, it’s extremely hard to get rid of them.

“We’re gonna have one shot maybe to get out of that mess because once we fall deep into socialism, it’s gonna take a violent revolution,” he said. “The best hope for young Americans is going to be emigration.”

If Schiff’s prediction comes true, the only way out of this is for Trump to switch his VP to Rand Paul for 2020. As a staunch critic of the Fed and its expansionary policies, Paul could be at the forefront in educating the public on how the Fed is really at fault for the collapse, straying away from blaming the free market.

Paul could also teach Trump that keeping interest rates low for too long only hurts our economy in the long run.

The pair already established some chemistry after Trump’s decision to pull US troops out of Syria and Afghanistan, let’s just hope something more comes out of this, or this could be the end of our country as we know it.

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