# Two Economists predict 2013 crash worse than 2008



## Dave

Economist Schiff: Upcoming Crash Will Pale 2008



> NEW YORK - Investors need to prepare for an upcoming stock market crash that will be "worse than 2008."
> 
> That's according to a well-respected author and investor, making a recent appearance on Fox Business.
> 
> Peter Schiff, the CEO of Euro Pacific Capital, says the stock market collapse we experienced in 2008 "wasn't the real crash. The real crash is coming."
> 
> He says that Federal stimulus, or quantitative easing, never works and that it just makes the economy sicker in the end. "The reason we are so screwed up is all this quantitative easing is toxic. I don't doubt that we are going to pressure Germany into printing. We are like the kid who is trying to get a friend to ditch school with us to go to the beach. We are a bad influence on everybody."
> 
> Schiff's solution is to raise interest rates, but he acknowledges that it would bring a huge downside risk with it. "In America, the problem is that interest rates are too low. They have to go up. We can't have an economy with interest rates at zero. If the Fed lets interest rates go up, we have to realize that we will have a deeper recession, we have to realize that banks are going to fail."
> 
> He points out that today's "safe haven" investments - the U.S. dollar and Treasurys - are anything but safe. "There are a lot of people who don't understand what is going on. Look at how many people are buying the dollar. Look at people buying Treasurys. That makes no sense either. The risk lies in the dollar. The risk lies in Treasurys and other currencies being printed into oblivion."
> 
> A noted economist agrees with Schiff that a much worse stock market crash is coming. And unlike Schiff, he has given very specific details about just how bad it will get.
> 
> "The data is clear, 50% unemployment, a 90% stock market drop, and 100% annual inflation . . . starting in 2012."
> 
> That catastrophic outlook comes from Robert Wiedemer, economist and author of The New York Times best-seller Aftershock. Before you dismiss Wiedemer's claims, consider this: In 2006 he accurately predicted the collapse of the U.S. housing market, equity markets, and consumer spending that almost sank the United States.





> In a recent interview, Wiedemer unapologetically displayed shocking charts backing up his allegations, and then ended his argument with, "You see, the medicine will become the poison."
> 
> The interview has become a wake-up call for those unprepared (or unwilling) to acknowledge an ugly truth: The country's financial "rescue" devised in Washington has failed miserably.
> 
> The blame lies squarely on those whose job it was to avoid the exact situation we find ourselves in, including current Federal Reserve Chairman Ben Bernanke and former Chairman Alan Greenspan, tasked with preventing financial meltdowns and keeping the nation's economy strong through monetary and credit policies.
> 
> At one point, Wiedemer even calls out Bernanke, saying that his "money from heaven will be the path to hell."
> 
> But it's not just the grim predictions that are causing the sensation; rather, it's the comprehensive blueprint for economic survival that's really commanding global attention.
> 
> Read more: Economist Schiff: Upcoming Crash Will Pale 2008


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## Dave

And it looks from today's reports on Foxnews that the wheels are already in motion...



> Today's Markets
> 
> The Dow Jones Industrial Average fell 49 points, or 0.39%, to 12727, the S&P 500 slipped 3.1 points, or 0.23%, to 1354 and the Nasdaq Composite dipped 11.5 points, or 0.4%, to 2897.
> 
> This week is set to be a busy one from an economic standpoint. There are a slew of closely-watched economic reports on tap, and Federal Reserve Chairman Ben Bernanke is set to testify before Congress on Tuesday.
> 
> A report from the Commerce Department showed retail sales falling 0.5% in June from May, surprising economists who were expecting a 0.2% gain. Excluding the auto segment, sales were down 0.4%; economists had expected sales to remain flat.
> 
> Read more: Gloomy Economic Data Sap Wall Street's Enthusiasm | Fox Business





> "The weakness across sectors in June was broad based, which implies a general softening in consumer spending," analysts at Nomura wrote in a note to clients following the report.
> 
> Echoing that sentiment, IHS Global Insight Senior Principal Economist Chris Christopher wrote in a research note that "retail sales have hit a brick wall, plain and simple." He added: "The American consumer is not in a healthy state."
> 
> The International Monetary Fund revised its outlook for global growth down from its April 2012 forecast by 0.1 percentage point to 3.5% for 2012 and by 0.2 percentage point to 3.9% for 2013. The IMF also cut its U.S. forecast by 0.1 percentage point for 2012 to 2% and revised it lower by 0.1 percentage point to 2.3% for 2013.
> 
> "In the past three months, the global recovery, which was not strong to start with, has shown signs of further weakness," the IMF said in a report, noting that downside risks "loom large."
> 
> Read more: Gloomy Economic Data Sap Wall Street's Enthusiasm | Fox Business


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## Lezyne

Thank you very much for posting that information. New Zealand is now the lowest paid country in the OCED (it was the best in the 1950's with only TWO people unemployed and it became a national joke that the Prime Minister of the time knew them) - We have the highest drug problem per capital in the western world and the second in methamphetamine consumption, the highest rate of child abuse, violent crimes, murder - in fact over 2000 people have died on NZ roads than those who have died in military combat in Afghanistan during the same time period. The air quality is bad, the dollar is on a floating reserve which means we are suspectiable to economic woes, New Zealand also has one of the highest income disparities and fraud rates in the western world. A company in New Zealand was bought for 700million and they paid no tax.


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## AquaHull

Here's a link about LIBOR or Bank of England issues that may or may not be playing a role in this BS

theTrumpet.com - World News Analysis Based on Bible Prophecy by the Philadelphia Church of God

It's the headline with "LIBOR:The Biggest Con In Financial History"

Disclaimer, this site may contain/require Tinfoil Hat Wearing, and watch out for the "Green Kool-Aide", but it's interesting nonetheless. It's a religious site, but has a few articles on Finance recently. It's good to get different viewpoints and filter out the bad info, and keep the good.


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## gitnready4it

I can't help but wander if the current crop losses due to the drought and rising food prices will play a big role in pushing us over the cliff!


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## bainzy

THe game is nearly over I think, they are now just mopping up all the cash and assets they haven't bought with all their funny money…

I think after today, the meeting of the ECB, which was suppossed to be 'THE' meeting to sort out The Euro Crisis, we will here another load of BS until they herald in the ESM, which will consume the world…

The ESM is above all laws and must be paid back within 7 days ON DEMAND, if a country can't pay, they take the country….


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## Watercanlady

Good thing we are all getting prepared...


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## PrepperRecon.com

I listen to Schiff's radio show from time to time and read _The Real Crash_ and _Crash Proof_ He called the housing market bubble and seems to be accurate on everything he is saying. I haven't heard of Wiederman, but it sounds like he is on the right track. I am going to look him up now. Thanks for the tip!


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## preppermama

Oh the next crash is coming, it's just a matter of when.


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