Bitcoin News and Finance Economist Peter Schiff Warns All Banks Will Fail, People Will Suffer Massive Losses as Banking Crisis Unfolds Skip to main content

Economist Peter Schiff Warns All Banks Will Fail, People Will Suffer Massive Losses as Banking Crisis Unfolds

Economist Peter Schiff Expects All Banks to Fail — Warns People Will Lose 'Tremendous Amount' as Banking Crisis Unfolds

Economist Peter Schiff has warned that all banks will fail and anyone having a bank account will end up losing money. “No matter what happens, people are going to lose a tremendous amount as this banking crisis unfolds,” Schiff stressed.

Peter Schiff Warns About All Banks Failing

Economist and gold bug Peter Schiff reiterated his concerns regarding the state of the U.S. economy and the impending banking crisis on the David Lin show, published last week.

“The whole banking sector is completely insolvent, thanks to what we’ve done over the last decade or so by loading up these banks with all this long-term, low-yielding debt. And we had all [this] deposit insurance so nobody really cared about what the banks were doing with their money because it was all insured by the government,” Schiff described.

However, he stressed that the collapses of major banks earlier this year have made people aware that the government may not fully cover all bank deposits in the event of a failure, especially if the amount exceeds the FDIC insurance limit. “The message that sends is if you’re a customer of a small bank, a regional bank, [or] a community bank, and you’ve got a large account, you just better get your money out. There’s no reason to leave it there. They can’t pay you enough interest to compete with a money market and what if the bank fails? You may be, you know, SOL,” Schiff detailed, cautioning:

So, there’s a huge run on these banks. They’re all going to fail.

The gold bug added that if the government wants to bail out all of these banks, “the only way it can do it is by destroying the value of the deposits because of massive inflation.” He emphasized: “The money to bail out the banks has to be created by the Fed. It’s the only way they’re going to get it.”

Schiff further warned:

It doesn’t matter if your bank fails, you’re going to lose money if you have a bank account.

The economist explained that “either the bank’s going to fail because the government doesn’t bail it out and you’re going to lose your deposits or the government bails out your bank and your deposits lose their value because inflation destroys the purchasing power. So, no matter what happens, people are going to lose a tremendous amount as this banking crisis unfolds.”

Moreover, Schiff recently said the Federal Reserve has lost the inflation fight but the markets have not figured that out yet. He stated that the Fed has destroyed the banking system and Fed Chair Jerome Powell is “clearly worried” about a financial crisis. He also warned about a U.S. dollar crisis and the national debt spiraling out of control.

Last month, Rich Dad Poor Dad author Robert Kiyosaki similarly cautioned that more banks are about to fail, noting that regional banks are being wiped out. In May, the Fed revealed that 722 banks reported unrealized losses over 50% of capital.

Do you agree with economist Peter Schiff? Let us know in the comments section below.

Comments

Popular posts from this blog

Custodial Lightning Network Service Attack Discovered by LN ‘Newbie’ — Hacker Strikes 6 LN Custodians

On September 18, a Redditor posted to the r/bitcoin forum and explained how he discovered a way to “attack [the] lightning Network’s custodial services.” The Reddit account dubbed “Reckless Satoshi” wanted to figure out if a “discrepancy between real routing fees and service’s transaction fee can be exploited for a profit.” The researcher disclosed that he wanted to see how large the damage could be and said “it is bad.” 6 Lightning Network Custodial Services Attacked, Researcher Discloses Findings to Offenders Prior to Public Disclosure A Redditor called Reckless Satoshi published a disclosure post on r/bitcoin this past Saturday and disclosed how he had found a vulnerability with routing fees and some of the Lightning Network’s custodial services. The research attack was done in good faith and after it was complete he disclosed the bugs to the offending services before publishing his findings. Reckless Satoshi used the Lightning Network (LN) attack on six different services incl...

Axie Infinity Down 40% Since Last Week’s Price High, Protocol Revenue Outshines Competitors

Last week, the game token leveraged within the Axie Infinity gaming universe skyrocketed to all-time highs, while other crypto markets remained extremely lackluster. During the last seven days, Axie Infinity’s platform token has dropped significantly in value shedding more than 12%. Meanwhile, the game platform’s smooth love potion token has slid over 8% over the last 24 hours. Axie Infinity Down More Than 40% Since All-Time High Not too long ago, the axie infinity (AXS) token was a topical conversation because it reached an all-time high on July 15. At the time, AXS managed to capture $28.93 per unit and since then it has shed 12.8% during the last seven days. The axie infinity (AXS) token is used within the blockchain-based game that involves battles between token-based creatures called “Axies.” AXS is used for the game’s governance system as well as other actions within the game. At the time of writing axie infinity (AXS) is exchanging hands for $16.70 per coin. AXS/USD on Ju...

Play-to-Earn Game From Polker (PKR) Exchange Listing – Endorsed by Akon

The Play-to-Earn NFT based Polker.Game ‘s native token $PKR has been officially listed on the popular centralized exchange BitMart. Polker.game has been in the spotlight recently as Akon, the American R&B superstar and record producer gave his official endorsement of polker stating that the “game is revolutionary” and that Polker is “hands down.. the best play to earn, NFT game in the space.”. With the BitMart listing and celebrity endorsement from Akon, Polker is perfectly positioned to become a major player in the Play-to-Earn league. Watch Akon’s Video Here What is Play-to-Earn? Although not a new concept, play-to-earn has become a trending term due to the popularity of the NFT game AXIE infinity. In the past, previous play-to-earn games have also achieved success – however, thanks to the huge amount of development in the blockchain space in recent years the gaming experience is now massively improved. Play-to-Earn games are essentially free to play and open to anyone and...

China to Crack Down on Copyright Infringement Through NFTs

Authorities in China are going after creators of digital collectibles based on other people’s works of art, the use of which was not authorized. The government offensive is part of a campaign to combat online copyright infringement and piracy with the participation of several departments. Regulators in China Move to Strengthen Copyright Supervision of Online Platforms The National Copyright Administration of China (NCAC) has recently launched a campaign against copyright infringement and piracy on the internet, together with the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Internet Information Office of the People’s Republic. A major objective of the initiative is to improve copyright supervision of online businesses by investigating cases involving the sale and distribution of infringing products on short video, live broadcast and e-commerce platforms, and promptly dealing with infringing content, the agency announced in a press r...
Blogarama - Blog Directory