People have been warning for years that the next big financial collapse is just around the corner.
But whenever anyone mentions the possibility of a once-in-a-lifetime financial collapse, nearly everyone laughs them off the stage.
And now, a top economist just made one shocking prediction that will leave Americans terrified.
Is a financial crisis looming?
Americans who know their history realize that our nation was molded into what it is today because of the financial collapse of the Great Depression.
Very few families were left untouched by the impact of the Great Depression, as millions of people went from living the American dream to facing unimaginable hardships.
The Great Depression altered the wealth of entire segments of American society.
America made it through this dark time thanks to the rise of World War II.
But people have been warning about the next big financial meltdown that could put our society on the brink of collapse since the 1990s.
When the 2008 financial crisis hit, Americans held their breath in anticipation of the big crash everyone had predicted for years.
Fortunately, the 2008 crisis turned out not to be the once-in-a-generation event that would alter the course of history.
But that doesn’t mean America is out of the woods yet, as a lot of economic indicators signal something big is on the horizon.
Hold on to your wallets
On the national level, the federal government’s debt is enough to put this nation into financial despair since it increases every second and is about to surpass $32 trillion.
And on an individual level, the debt for an average household has been skyrocketing.
In just credit card debt alone, the average household in the United States owes over $18,000.
And when you add on top of that the ever-increasing cycle of inflation that’s pinching the American people’s paychecks, it is unquestionable that we are teetering on the edge of a financial collapse.
That’s why no one was shocked to hear that three banks collapsed within the past week.
Silvergate Bank crashed on Wednesday followed by Silicon Valley Bank on Friday.
*Signature Bank has been closed
*All depositors of Silicon Valley Bank and Signature Bank will be fully protected
*Shareholders and certain unsecured debtholders will not be protected
*New Fed 13(3) facility announced with $25 billion from ESF to backstop bank deposits pic.twitter.com/LKipIRMg1T
— Nick Timiraos (@NickTimiraos) March 12, 2023
Then, Signature Bank collapsed on Sunday evening.
As the nation looks around for answers, one of the world’s most trusted economists has a dire warning for the United States.
Peter Schiff has made a name for himself as an accurate predictor of major economic disasters.
And Peter Schiff warned Americans on Twitter that “the U.S. banking system is on the verge of a much bigger collapse than 2008. Banks own long-term paper at extremely low interest rates. They can’t compete with short-term Treasuries. Mass withdrawals from depositors seeking higher yields will result in a wave of bank failures.”
The U.S. banking system is on the verge of a much bigger collapse than 2008. Banks own long-term paper at extremely low interest rates. They can't compete with short-term Treasuries. Mass withdrawals from depositors seeking higher yields will result in a wave of bank failures.
— Peter Schiff (@PeterSchiff) March 10, 2023
Many Americans remember how bad things were in 2008.
If Schiff is correct, Americans are in for some truly hard times.