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The perfect storm is the real fiscal cliff that we’re going to go over. The real fiscal cliff is when we
can’t borrow any more money because our creditors wake up to the fact that we’re no good for the debt and interest rates start to rise.
So says Peter Schiff of Europacific Capital from a piece in King World News which is made available by Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money). This paragraph must be included in any article re-posting to avoid copyright infringement.
Schiff goes on to say, in part:
[If and when interest rates] rise sharply we will have to choose between default and collapse, or runaway inflation. That’s really the perfect storm and unfortunately we are sailing right in to it.
Sam Ro (www.businessinsider.com) says* in his reference to Schiff’s comments that while “Schiff continues to sound the alarm on the risks of the government’s mounting debt load and the Federal Reserve’s low interest rate policy – that should interest rates rise, it will become increasingly difficult to finance the debt – [the truth of the matter is that] Treasury market bears have been calling for interest rates to rise for nearly a decade, yet rates only continue to tumble.”
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*http://www.businessinsider.com/peter-schiff-perfect-storm-2012-8#ixzz23FPK7HJv
Editor’s Note: The above posts may have been edited ([ ]), abridged (…), and reformatted (including the title, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.
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