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New year is here and people all over the globe are hoping that it will fade the frightening memories they met during 2022. But Peter Schiff, Euro Pacific Capital Inc CEO, had a pessimistic perception over the economy this year. He said that “the US Dollar might have performed strong last year but it has hit a low in the past 6 months. This weakness may stay during this year too and inflation may get worse.”
There’s More to Come
He disagreed with the Wharton University professor and economist, Jeremy Siegel, who believes that we are seeing a decline in inflation considering the falling real estate prices. Schiff countered him, saying that “those are the falling asset prices while the consumer prices are on the rise. This includes values associated with households like tax, maintenance, utilities, rent and more.”
Schiff previously shared his predictions regarding inflation too. He believes that “we are going to default” as the country has more debt than 2008 which indicates a much worse crisis than the Great Recession. The gold bug has his views on the cryptosphere and thinks the sector is close to its “extinction”. He said “a temporary boost to $100K is likely, but a decline to $0 is inevitable.”
He believes that gold will rise and give birth to a different breed of assets pegged to the commodity. As it cannot be printed, its demand will escalate during uncertain times. Peter Schiff is not the only one seeing the worst in the economy in the year ahead. Former Scion Capital manager and investor, Michael Burry, thinks that the worst is yet to come.
Hugo Gurdon of the Washington Examiner points out that the inflation is hitting the middle class more than the lower class and the ones at the top of this chain, citing a CBO report. He says the prices for this class have increased by 15.5% between May 2020 to May 2022.
Previous year was a bit harsh for the economy as well as the crypto industry. The fall of FTX gave the industry a major push down the hill. Moreover, the Russia-Ukraine conflict has shaken the global economy due to interruptions in the exports and import of commodities like crude oil, coal, wheat and more. This was not it as the world started witnessing rising covid cases by the year’s end.
Around 37 Million cases were reported in China in a single day which created global tensions among the world leaders. Currently, there’s no news surfacing associated with lockdowns in any nation but the governments have to act on the situation in order to keep their economies flowing without any interruptions. According to the Labor Department employment data, 30%-59% of the jobs were affected in various industries during February 2020 to October 2021.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
