Economic gadfly Peter Schiff, president and CEO of Euro Pacific Capital, is coming out strong in response to the International Monetary Fund’s World Economic Outlook. Released Tuesday, the IMF’s report said global growth would stall in 2013 if the pending “fiscal cliff” fully materialized.
While the outlook received little official comment in Washington, Schiff told The Breakout website on Wednesday that it’s not because we will go over the cliff that will lead to America’s financial ruin, but because we won’t go over it.
“It’s not because we go over this phony fiscal cliff, it’s probably because we don’t go over that one because the government cancels the spending cuts, cancels the tax hikes, and instead we end up going over the real fiscal cliff further down the road,” Schiff, a frequent critic of government spending, said.
By “kicking the can down the road,” Schiff believes interest rates will spike and we won’t be able to afford to pay the interest on the enormous amount of debt that we have.
“In fact, the real fiscal cliff comes when our creditors want their money back, and we don’t have it,” he states.