Forget about higher interest rates. To starve off an economic collapse, the Federal Reserve may have to resort to another round of quantitative easing. At least, that’s according to famed investor Peter Schiff.
“It’s not just a 580 points we drop today or the 530 on Friday or the 350 on Thursday, ” he explained in an interview with Newsmax earlier this week. “We have thousands and thousands of points to surrender if the Fed is actually going to follow through with its threats to raise interest rates.” (Source: Newsmax, August 24, 2015.)
The idea is simple: both the stock market and the real economy have been too comfortable with the eased monetary environment. If the growth we see in the U.S. economy was a result of these artificially low interest rates, a Fed rate hike could potentially cause an economic collapse.
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Read the full story at Profit Confidential, by Jing Pan
Peter Schiff
