Peter Schiff, author of “Crash Proof” predicted the 2007 economic collapse, blaming an economy built on credit expansion, rather than production.
In an interview with CNBC, he now says government “default is inevitable,” for the same reason. Schiff blames the cause of our government debt problems on in our inability to actually pay our bills. When we raise the debt ceiling, we just borrow more money and pretend to pay off our bills. But once the markets lose confidence in this scheme, the lending ceiling will collapse. As a consequence, Schiff predicts a currency crisis where the only thing thing that can happen is default.