Fed Fears Complete Economic Collapse – Peter Schiff

It gets worse when the Fed has to save the economy again. Schiff predicts, “I think the Fed is going to have to throw in the towel on the inflation fight because it will be fighting something it fears more, which is a complete economic collapse. . . .The federal government may be legitimately forced to cut Medicare and Social Security instead of illegitimately cutting it through inflation
As a result, Schiff predicts big losses in many stocks (but not all), bonds and bank deposits. Schiff contends, “They can’t cover the deposits at the FDIC. They have to acknowledge that the FDIC is bankrupt and people are going to lose money at a bank. The losses are going to dwarf those in the Great Depression because we have a far more leveraged system now thanks to government intervention.”
Schiff says he also likes gold and silver as a core investment and thinks they both go way up in price in a world where the dollar is eaten up by inflation.