Of course he has a new book to sell, The Real Crash, but it’s not as if the CEO and chief global strategist of Euro Pacific Capital suddenly hit upon the theme, as he was one of the few people (no, really) to accurately call the 2008 market bust.
“We are broke; let’s just acknowledge it because not doing so only makes it worse,” Schiff (left) said in an interview with AdvisorOne.
“If you look at the increase in contingency liabilities in just the past year with government pensions, social security and mortgage obligations, the true amount of the increase in the debt is not $1.4 trillion, rather $5 trillion,” he calculates. “And remember, that’s only from government pensions, social security and mortgage obligations, not any of the other unfunded obligations.”
According to Schiff, that equals $43,000 per household, or roughly 90% of the average annual household income of $49,000.