Investors like Peter Schiff have been predicting the collapse of the American economy for a long time, and for good reason. If an economy is built on a foundation of borrowed money, then that economy is living on borrowed time. However, despite how fundamentally unsustainable our financial system is, it has somehow defied all expectations. It has gone on far longer than any of us could have imagined.

“It’s interesting that during the entire term where Obama was president, the Fed really only raised rates once. I mean, they raised them a second time, but that’s after the election. Since trump was elected they’ve already had three rate hikes and they’re planning on doing more.

But the low interest rates were part of the problem. The Fed needs to raise interest rates, but when they do that, the economy is going to collapse. The whole bubble, the recovery was phony, we don’t want to keep the phony recovery going. We want to let it implode so we can have a real recovery built on a solid foundation.”

However, Trump’s decision to credit himself for the latest gains in the stock market, as well as a lower unemployment rates, is playing right into the hands of the establishment.

“If Hillary had won, a lot of the optimism surrounding the prospect of lower taxes and deregulation would be there, and my guess is that the Fed that claims to be data dependent, would not have been raising interest rates in the face of this horrible data. So I do think that politics are playing a role here. The reason the fed is ignoring the weak data is that they’re not afraid of collapsing the bubble on Trump’s watch…

…Once we go back into recession and they can maybe blame it on Trump, especially since Trump has made the mistake of pinning his presidency on the stock market, or this economy; when the economy tanks and the stock market tanks, and now the fed can try to save it, say “look at what Trump did, he wrecked this great economy and now we have to come bail him out. We have to do more QE, we have to cut interest rates,” and that may lay a foundation for the Democrats to run against Trump on how he wrecked the economy in the midterm elections, and then again in the president in 2020.”