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Peter Schiff the CEO and chief Global strategist of euro-pacific capital limited has warned about the inflation which has started some months ago in one of his recent podcasts he said the insanity continues Peter explained why he said Insanity doing the same thing over and over for a long period of time and expecting a different outcome back in the day when anyone talked about inflation that just talk about it for a very short time and say it will be fixed and it would Peter later stated that it makes no sense when everyone expects lower inflation but the results were always way worse than expected the Consumer Price Index came out was double expectations and the prices continued to spike higher despite all the FED has done to stop it feds have been increasing the interest rates since last March which makes the rate at 3.25 percent which has brought a very slow impact on the economy investors are always expecting lower inflation but then every month it keeps soaring higher and higher with all this happening Peter believes that inflation is not going to go away anytime soon or even within this decade most people believed the inflation came from the monetary policy mistake made after kovid but Schiff has made it clear that we're suffering from a historical monetary policy mistake was made years before coven possibly in the 90s Peter also spoke about Pepsi increasing prices which is more indicative of inflation he also pointed out Paul volcker who has increased prices to 20 in order to control inflation during the 90s the Consumer Price Index was roughly under two percent and comparing it to what's happening today the CBI cannot fall to that level this is because a lot of money has been printed and there has been a lot of debt Peter said we're not going down to two percent we cannot revert to something low we can only revert to something High because the two percent inflation rate we got was following the 2008 financial crisis what we're going to have is relatively High inflation to make up for the low inflation of past years we kind of like corrupted the monetary policy of the whole world Peter said as the feds cut the interest rates most major central banks did the same and some even made use of the negative interest rate policies just to get their rates below Americas this is because the dollar is the currency bearing the status of the world Reserve currency but this status is not going to last forever Peter insists the rate needs to be increased a lot more the hikes are too little to do something about the ongoing inflation but the government has to drastically reduce government spending puta proposed two outcomes on inflation first the FED succeeds in returning inflation to percent and all stocks bonds and real estate crash creating a financial crisis and creating a recession that includes government defaults and spending cuts he said the second outcome is the Fed pivots before inflation returns to two percent if they do pivot either to get rid of the financial crisis or to react to one inflation will rise the opposite of what was experienced after the 2008 financial crisis this time instead of embracing the dollar the world is going to stay away from it shift tweeted on Wednesday the US merchandise trade deficit unexpectedly jumped by 5.7 percent in September as Imports Rose by 0.8 percent and exports fell by 1.5 percent breaking a five-month streak a failing trade deficits he concluded now that the dollar is weakening the future trade deficit will widen and cause the dollar to fall further the U.S debt is now more than 21 trillion dollars and the budget deficit of the government in 2022 is 1.38 trillion dollars Schiff explained that the debt to GDP ratio in the US is higher than 125 as the US has done a fiscal mess more than Britain then selling pounds against the dollar is just jumping from frying pan to fire buying U.S treasuries is even more ridiculous as a safe haven because it is absurd to sell our country's currency due to debt problems and by dollars when the US has even more debt Schiff also continued the government is trying to get blood from the same turnips because Americans are broke we have no savings so can we possibly repay this debt of course not repaying the debt is not possible so what's gonna happen we're just gonna default Schiff said that he wasn't going to give the feds any credit it should have raised the rates a lot more than they already have it's gotten so much slower and the economy cannot handle it the inflation would have gotten worse if the FED continues to increase the rate it should not stop increasing the rates because it's going to put the economy into a financial crisis it has to do that they have to make the rates go up and slash government spending but these may not happen the recession is going worse and Powell is going to Pivot in defeat if you enjoyed this video subscribe if you haven't already and turn on notifications for more content like this and 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