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According to Peter Schiff, the Biden economy is in danger, and the administration’s efforts amount to putting lipstick on a pig. SchiffGold.com reports:
Peter Schiff recently appeared on Real America with Dan Ball to talk about the state of the US economy. He described it as a disaster and said Bidenomics consists of putting lipstick on a pig.
The administration and its mainstream support network insist the economy is strong. They often point to the “resilient” American consumer as proof that the economy is plugging along. After all, how can the economy be bad if people keep spending money?
But how have Americans managed to keep up with rising prices?
Peter said people have made ends meet in two ways.
First, you mentioned a few million jobs that have actually been created during the Biden presidency. Well, those jobs went predominantly to people who already had jobs. … Moonlighting is at a record high in America. So, people are paying these higher prices by taking on second and third jobs and giving up their leisure. The other way they’re doing it is by borrowing more money.”
Consumer credit data backs up Peter’s second point. Even with interest rates at over 20%, credit card debt is at record highs. The problem with borrowing is the money eventually has to be paid back and that’s starting to become a problem.Auto delinquencies are surging. People can’t even afford to make their car payments.”
Meanwhile, saving levels have fallen into the basement.
As prices skyrocketed last year, Americans blew through their savings to make ends meet. Aggregate savings peaked at $2.1 trillion in August 2021. As of June, the San Francisco Fed estimated that aggregate savings had dropped to $190 billion.
Read more here.
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