An economist, Peter Schiff, has said the US government under President Joe Biden is printing so much cash to pass his COVID-19 “recovery bills” that it would eventually create an increase in prices that will be felt far and wide.
During an interview with Tucker Carlson, Schiff predicted that inflation will essentially become a “Biden Tax” that every American will feel because of Biden’s out of control spending.
In other words: Schiff says the price of goods that Americans use every single day will continue to get more expensive, warning that families would feel the burden of all that printed money
“This is a tax. It is the inflation tax. And if you look at how much the cost of living went up, measured by the [consumer price index] in the first four months of this year, it’s 2 percent. So, if you triple that to annualize it, we have consumer prices rising at 6 percent annually,” the economist warned.
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“But if you look at the monthly numbers, every month it accelerates. So, if you extrapolate the trend of the first four months of this year for the entire year, you’re going to get a 20 percent increase in consumer prices in 2021,” Schiff warned.
“The real problem is the surplus of money. Whenever you print a lot of money, it’s always a goods shortage because the Federal Reserve can print all the money they want, but they don’t print products to buy with the money. So, we have all this money being printed. We’re not producing a lot. People are sitting at home cashing unemployment checks,” said Schiff.
“This is a tax. It is an inflation tax, a Biden tax, whatever you want to call it. But when Joe Biden says, ‘Don’t worry! Only people that make over $400,000 a year are going to have to pay higher taxes to fund all these programs,’ he’s lying,” he added.
“Because every American is going to pay the inflation tax. And it’s going to hit the middle class and the poor the hardest.”
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“Remember early on [during the 2008 housing bust and financial crisis], [former Federal Reserve chair Ben Bernanke] said, ‘Don’t worry about [subprime mortgage defaults]. It’s contained.’ Well, now they’re saying don’t worry about inflation. It’s transitory,” Schiff said.
“Inflation is as transitory now as the subprime market was contained. And this inflation crisis is not only going to be worse than the financial crisis, it’s going to be worse than the pandemic. Because the government’s cure is what’s going to kill the economy, not the disease itself.”
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