Big short Schiff: the recession began at the end of Trump's term, and he won't be re-elected.

Peter Schiff, a big Wall Street short who accurately predicted the 2008 global financial crisis, says the U. S. economy is sliding into freefall, which will be worse than the Great Recession of 2008.

The Euro Pacific Capital chief executive predicted that the Fed would cut interest rates to zero and launch quantitative easing, in which central banks buy Treasuries from financial institutions to stimulate the economy.

"the dollar will bottom out and will drive the bond market, and the next crisis will not be caused by subprime mortgages, but by the bond market," he said. "

Mr. Schiff's comments came as the Dow Jones Industrial average tumbled 800 points on Wednesday, the biggest drop this year and the fourth-biggest one-day drop in history. Us 10-year Treasury yields have fallen below two-year yields for the first time since 2007, fuelling fears of a global recession.

Mr. Schiff said the Fed has stopped inflating asset bubbles, which will dampen Trump's hopes of re-election.

"it's going to be an inflationary recession, there's no way out, and it's a political disaster for Trump because the recession will start before the end of his term, which means he won't have a second term," he said. "

Mr Schiff added that the US economy was about to experience stagflation or rising inflation.

"as we enter the recession, consumer prices will rise faster, which will further push up consumer prices once the dollar starts to depreciate," he said. "

"Click to sign up for this summit

Scan QR code and apply to join SMM metal exchange group, please indicate company + name + main business