For Immediate Release


Taruna Godric, 416-916-5202 ext 414

The Real News Network

The Next Depression?

President of Euro Pacific Capital, Peter Schiff, fears US financial stimulus may cause devastating inflation and depression

TORONTO, Ontartio - With the US financial bailout in total of more than $8 trillion, experts warn of a looming economic depression. In an internal memo regarding recent "unprecedented" bailout attempts by global financial authorities, Citigroup Chief Technical Strategist, Tom Fitzpatrick says "the world is not going back to normal after the magnitude of what they have done".

Peter Schiff, economist and president of Euro Pacific Capital suspects that the US
government's attempt to promote consumer spending by excess printing of paper currency will lead to an "inflationary depression". He goes on to say that the current financial situation is a result of the government's "years of reckless spending" and is a consequence of a service sector economy dependent on global borrowing.

US Federal debt, including unfunded government programs and obligations, has reached over $53 trillion or roughly half a million dollars per US household. The printing of more money, Schiff says, "debases the value of our savings, debases the value of our wages and prices rise". If the US dollar is to be preserved, he suspects that there will be "some radical and painful changes in the way we run monetary policies and the government".

UN Secretary General Ban Ki Moon said last week of the current government financial intervention, "if not handled correctly, today's financial crisis will become tomorrow's human crisis...with potentially devastating consequences for all".

Watch the full story on The Real News Network



This is the world we live in. This is the world we cover.

Because of people like you, another world is possible. There are many battles to be won, but we will battle them together—all of us. Common Dreams is not your normal news site. We don't survive on clicks. We don't want advertising dollars. We want the world to be a better place. But we can't do it alone. It doesn't work that way. We need you. If you can help today—because every gift of every size matters—please do. Without Your Support We Simply Won't Exist.

Share This Article

More in: