By As President-elect Donald Trump readies to take office, prominent economist Peter Schiff is sounding the alarm about significant economic challenges facing the incoming administration. During an appearance on “Newsmax New Year’s Eve With Shaun Kraisman,” Schiff painted a stark picture of an economy plagued by deep-rooted problems that he believes have been largely ignored by both investors and policymakers.
Schiff attributed Trump’s victory to widespread economic dissatisfaction, suggesting that financial struggles have been consistently under-reported and underestimated, writes The Daily Caller.
“The reason Donald Trump won is because the economy is a mess,” Schiff stated. “Unfortunately, it’s going to become an even bigger mess once Trump takes office. These problems aren’t going away, and the markets may face significant downturns.”
To address these challenges, Schiff called for bold, structural reforms, including substantial cuts to government spending, entitlement programs, and defense budgets. He argued that small-scale fixes targeting waste and fraud would not be enough. “We need meaningful cuts, not just adjustments around the edges. Higher interest rates and a correction in the stock market may be necessary to realign economic imbalances,” he explained.
Schiff acknowledged that these measures would likely trigger short-term economic pain, including the possibility of a severe recession, but emphasized their importance for long-term stability. “We can’t avoid the consequences of years of reckless fiscal policies without experiencing some hardship,” he warned.
Highlighting signs of economic distress, Schiff has pointed to rising credit card delinquency rates, which have now reached their highest levels since the 2008 financial crisis. He argues that these indicators reveal economic vulnerabilities that have been downplayed by both government agencies and mainstream media. “The voters saw through the narrative and responded at the ballot box,” Schiff noted.
Under the Biden administration, inflation reached a peak of 9.1 percent in June 2022, placing enormous strain on household finances, something that Karl Rove has claimed will sink Joe Biden’s legacy from future historians.
“The second thing that they’re going to remember him for is weakness on the international front,” Rove said on Fox News’s Sunday Night in America with Trey Gowdy. “Almost from the beginning moment, most visibly seen in the withdrawal, the bloody, unnecessary withdrawal from Afghanistan that emboldened the dictators in Moscow, Tehran, Pyongyang, and Beijing to see America’s weak, and led, in my opinion, directly to the Russian invasion of Ukraine and to the emboldening of our adversaries in the Middle East and the attack on October 7 on Israel.”
Another pivotal moment from Biden’s final year in office, which Rove suggested would heavily influence how his presidency is remembered, was his performance during the first 2024 presidential debate in June. During the event, the nation observed that the president was “incapable of putting two sentences together.”
“He will be seen as a man who should not have been there in the first place and certainly should never have considered running for his second term cause he was not up to fulfilling and finishing his first term with strength and vigor, let alone trying to seek eight years of office in the White House,” the former Bush adviser said.
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