Phony Government GDP Numbers Hide Shrinking U.S. Economy-Peter Schiff…” the inflation numbers are going to get bigger, and the government is going to have to lie even more.”
By Greg Hunter
21 AUGUST 2013
Money manager Peter Schiff claims the real U.S. Gross Domestic Product (GDP) is closer to “$13 trillion” than the official government number of “$16.6 trillion.” That is a discrepancy of $3.6 trillion! Schiff explains, “The government keeps telling us the economy is getting bigger, but millions of Americans are leaving the workforce. We’ve got record numbers of people on food stamps . . . and part-time jobs are replacing full-time jobs. How is that consistent with a growing economy? It’s not.” Schiff goes on to say, “It just makes perfect sense to me the economy is shrinking, yet the government is using phony numbers to try to convince us a shrinking economy is growing.” So, how does a shrinking economy pay off an enormous growing debt? Schiff contends, “So, when interest rates go up because the world realizes we have too much debt relative to the size of our economy, consumers can’t spend anymore, and now the economy collapses in size and the debt balloons . . . This is a huge, huge crisis. The question is: When is it going to come to a head? I think it’s a lot sooner than anybody thinks” Schiff predicts, “It’s going to be harder and harder for the U.S. government to borrow money from abroad which means the Fed is not going to be tapering. They’re going to print more and more money to buy the bonds nobody else wants. That means the inflation numbers are going to get bigger, and the government is going to have to lie even more.” Join Greg Hunter as he goes One-on-One with Peter Schiff, CEO of Euro Pacific Capital.