Wall Street tycoon Peter Schiff: The US government is bankrupt! The Federal Reserve is an "accomplice"

Wall Street mogul Peter Schiff recently explained how U.S. government spending has created the price inflation that Americans are fighting, and how massive spending has bankrupted the United States.

The Biden administration has been touting its "investments" in infrastructure and other projects, while ordinary Americans continue to struggle with rising prices.Industrial foreign exchangepoint outThe government is not really investing in anything, it is just spending money that doesn't belong to it, which generates inflation.

Schiff said,Large-scale government spending is financed by deficits, which are the real source of inflation.For years, this has been a source of inflation because the Federal Reserve has been monetizing all government debt by creating money. This is where the pressure for rising prices lies. So, the government should be held responsible for inflation. As long as the government keeps spending money they don't have, inflation will get worse.

Vice President Harris once said,The average American is just $400 away from bankruptcySchiff pointed out thatNow the U.S. government is also bankruptHe said:

"We acknowledged that in the fight to raise the debt ceiling. We said that if we couldn't raise the debt ceiling, we would have to default on the debt we had already borrowed, which meant we were bankrupt. We didn't have enough resources to pay our bills. All we could do was fund our debt so we didn't have to pay our bills. So the whole country went bankrupt because of all this reckless borrowing and spending that was facilitated by a cooperative and complicit Federal Reserve that kept interest rates artificially low and monetized all of its debt."

The artificially low interest rates have also inflated various economic bubbles and stimulated improper investment in the economy. "Now,The Federal Reserve has been forced to allow interest rates to rise, and the bubble is bursting, which will be felt throughout the U.S. economy"He warned.

Schiff also referred to the recent BRICS summit and its expansion. "They are seeking to de-dollarize, reduce and eventually eliminate their dependence on the dollar. When they no longer need dollars, they will no longer need to sell us their products because there will be enough domestic demand for their products.That means America is going to be in a lot of trouble because we don't have the industrial capacity to make what we're getting from China now. Despite Biden's talk of a manufacturing renaissance, it's all nonsense.During his tenure, manufacturing continued to shrink, and our trade deficit hit an all-time high, "Schiff said.