Even though what he says may be true, for a leading presidential hopeful to be so bearish (perhaps rightfully so) on the United States’ financial position, it surely has to gravely concern Americans and and other nations.
With the debt projected to reach $20 trillion by the end of 2016, it’s easy to see why.
Peter Schiff is among many who believe a U.S. debt default is inevitable and that Trump just exposed America’s dirty little secret:
“Trump just admitted on CNBC that America has too much debt to afford a rate hike, and that he wants our creditors to accept less than 100 cents on their Treasuries… In other words, Trump knows a U.S. government default is inevitable.”
If the U.S. were to default on its debt, we could possibly see the stock market implode, interest rates skyrocket, the property market to collapse and civil unrest to follow. Needless to say, it would be a rather active period in the world.
Following Trump’s statements, he had us believing that he was going to go against the current dogma in the establishment by calling out the Federal Reserve.
But true to form, Trump is bucking those expectations as well. In fact, by claiming that the United States would never default because it can print whatever money it needs, he seems to actually be aligning himself with Federal Reserve policy!
“I said if we can buy back government debt at a discount, in other words, if interest rates go up and we can buy bonds back at a discount — if we are liquid enough as a country, we should do that,” Trump told CNN. “In other words, we can buy back debt at a discount.”
He just read from the Ben Bernanke playbook. Although rather than dropping money from a helicopter (like “Helicopter Ben”), in the near future it may dropped from a private jet.
Isn’t this what the central banks are doing now and what led to the gigantic problems we faced in 2008?
Regardless of what Donald Trump, Bernie Sanders, Hillary Clinton or any other presidential hopeful says, the U.S. debt has gone over the cliff.
This level of debt simply cannot and will not go on forever.
Whether we default on our debt or hyperinflate it away, there is going to be a lot of fallout when either scenario becomes reality.
That is why we believe it’s critical for you to get prepared NOW. With gold behaving just the way it did prior the 2007-2008 stock market crash, many of the stars appear to be aligning for a repeat of those miserable years.