Economist Peter Schiff has made some alarming predictions for the year 2024. According to Schiff, not only will the economy crash into a recession, but high inflation will also return with a vengeance. He has emphasized that the technicals are breaking down for the U.S. Dollar Index, and the Federal Reserve’s plan for interest rate cuts will only worsen the situation, putting renewed upward pressure on inflation.
Peter Schiff’s 2024 Economic Predictions
Renowned gold bug and economist Peter Schiff recently took to the social media platform X to share his predictions for the year 2024.
According to Schiff, investors are currently under the impression that the Federal Reserve has managed to restore price stability without causing a recession, which he believes to be a misconception. He warned that the economy will not only crash into recession, but high inflation will make a significant comeback in 2024.
Schiff explained that the U.S. Dollar Index is currently below 101 for the first time since July, and he predicts that it may decline by over 12% from its 2022 high, potentially leading to new highs in annual inflation.
As the year comes to an end, Schiff anticipates that the Dollar Index will continue to decline toward 100 while gold prices nudge their way toward $2,100. He believes that these movements will become more pronounced in 2024, with both the dollar’s fall and gold’s rise accelerating.
Furthermore, Schiff highlighted that the technicals are breaking down for the U.S. Dollar Index, making the situation even more precarious. He pointed out that the Fed’s planned interest rate cuts will not only accelerate the decline but also fuel inflation.
On the trade deficit, Schiff shared that the Nov. trade deficit in goods exceeded expectations, indicating a weak and dysfunctional economy. He warned that this could lead to a significant decline in the dollar and a rise in imported goods prices in 2024.
In a follow-up post, Schiff reiterated his prediction of a looming recession, emphasizing that the government spending credited with staving off the recession will only delay its onset and make it much worse.
It is important to note that Schiff has been vocal about his concerns regarding the U.S. economy and the USD. He has previously warned of a potential historic crash of the U.S. dollar and has cautioned that U.S. dollar holders will suffer significant losses. Additionally, Schiff has raised concerns about the possibility of a deep recession, an inflationary depression, an unprecedented financial crisis, and the largest bond market crash.
