Peter Schiff: Avoiding Looming ‘Fiscal Cliff’ a Mistake

The Breakout notes Schiff says QE3 can only take us so far and the Federal Reserve’s money printing will do so much destruction to the dollar through inflation, that we’ll see a currency collapse like never before, which will force a dramatic and painful new way forward.

“Our economy is so screwed up from years and years and years of bad monetary and fiscal policy that it’s going to be painful to correct that problem. But we have to do it,” he says. “We can’t keep avoiding the pain and in the process making the problem worse, because then we’re just going to have even more pain in the future to fix an even bigger problem.”

The Fed must stop printing money and politicians must create a real fiscal plan with budget cuts, tax reform and ultimately deficit reduction to avoid Schiff’s predicted doomsday scenario, the website concludes. And it’s not going to feel good. Schiff likens the pain of money withdrawal to that of an addict in detox.

“If we address these imbalances and let the economy restructure, people are going to lose their jobs in some sectors, some investors are going to lose money, it’s going to feel bad for a lot of people for a short period of time, but it will be very constructive pain,” he says. “The only way around this is to stop the presses, let interest rates go up, and they’re going to have to go way up, and let the chips fall where they may.”