PETER SCHIFF

PETER SCHIFF

Saturday, September 21, 2013

We are going to have to Restructure Treasury Debt , just like they Restructured Greek Debt



IU.com: You’re describing a violent scenario involving the sudden end of QE and quick increases to the federal funds rate. 

Peter Schiff : Yes. They’re going to have to let interest rates rise, sharply, let short-term rates go up. That’s when we’re all going to have to admit that we’re broke; particularly, the government is going to have to admit that it’s overpromised, that it can’t meet the commitments that it made to Social Security recipients, to retired employees who were promised pension benefits. In fact, it’s going to have to admit that it can’t even meet the commitments it’s made to its bondholders.
Forget about the debt ceiling, we’re not even going to be able to pay the interest on the money we’ve
borrowed, let alone repay the principal. We’re going to have to have a restructuring, just like they restructured Greek debt—we’re going to have to restructure Treasury debt.


Peter Schiff is a well-known commentator appearing regularly on CNBC, TechTicker and FoxNews. He is often referred to as "Doctor Doom" because of his bearish outlook on the economy and the U.S. Dollar in particular. Peter was one of the first from within the professional investment field to call the housing market a bubble. Peter has written a book called "Crash Proof" and a follow-on called "The Little Book of Bull Moves in Bear Markets". He is the President of EuroPacific Capital, which is a brokerage specializing in finding dividend-yielding, value-based foreign stocks.

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