Peter Schiff : we are in a depression

Peter Schiff on 4 Aug 2011 BBC Newsnight : "....what happens is a lot of people who control a lot of money around the world were making bad bets on an economic recovery but the reality is all the stimulus and the bailouts in the United States did not generate any recovery it generated some debt financed consumption but that was not a recovery , in fact that actually exacerbated the underlined fundamental problems with the economy , the US is actually headed for a more severe recession than the one we think we just emerged from and in fact I think we are in a depression , and the depression is interrupted by government stimulus which only sowing the seeds for the next downturn , the markets are only beginning to come to grips with this and the less the FED comes in with more quantitative easings or stimulus the markets are going down , but the problem is weakening and undermining the economy we need higher interest rates we need the government to cut back on spending but none of that is going to happen because the politicians do not ant the voters that taste that medicine but that's the only thing that's going to cure this economy ...." Peter Schiff said