http://www.theblaze.com/stories/2014/12/27/its-gonna-be-a-bloodbath-expert-says-the-economy-is-actually-still-weak-and-that-a-day-of-reckoning-needs-to-happen/“Next year might be a recession without [more quantitative easing],” Schiff said.
It’s a recession that needs to happen, in Schiff’s view.
“Let the recession happen, raise rates,” was his prescription. “It’s gonna be a bloodbath but it’s got to happen.”
Easy monetary policies aren’t a permanent fix, Schiff said, but merely “delay the Day of Reckoning” — meaning that day “will just be worse when it comes.”
Schiff pointed to a slew of economic indicators that demonstrate relative weakness in the economy: durable goods orders slacking off, a weak purchasing managers index and a weak holiday shopping season (though last-minute shopping may have helped boost retailers’ bottom line).
As global oil prices fall, many of America’s well-paying jobs will evaporate, Schiff predicted, and the employment situation will get dire.
“Young people can’t get part-time jobs because their grandparents have those jobs,” Schiff said.
Schiff’s prediction: “Companies bought too much [preparing for the holiday season] and they’re not gonna be buying more. There’s going to be a lot of layoffs come January.”
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